2010-2014 Corporate Plan Summary - EDC

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Table of Contents
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Introduction
Executive Summary
Chapter 1 – The Planning Environment
Chapter 2 – EDC’s Business Strategy
2.1 Developing Knowledge and Relationships
2.2 Deploying Innovative Solutions
2.3 Delivering Value to EDC’s Customers and Partners
2.4 Measuring Success
Chapter 3 – The Financial Plan
3.1 Assumptions
3.2 Financial Management Strategy
3.3 Projected Consolidated Statements of Income and Comprehensive Income
3.4 Projected Consolidated Balance Sheet and Statement of Changes in Shareholder’s Equity
3.5 Economic Capital
3.6 Projected Consolidated Cash Flow Statement
3.7 Capital Expenditures
3.8 Accounting Policies and Future Accounting Changes
3.9 Asset Liability Management and Borrowing Strategies
3.10 Operation of Subsidiary
Annex I – Corporate Overview
Annex II – Canadian Export Forecast by Sector and Market
Annex III – The Evolution of CSR at EDC
The 2010-2014 Corporate Plan was approved by EDC’s Board of Directors on October 21, 2009. The Plan and its
underlying assumptions were developed over the summer and fall of 2009, during a period of ongoing uncertainty in the
global economy. While the Plan and its underlying assumptions were aligned with the economic environment at the time
of their development, continued volatility in the global economy may alter the economic landscape and, in some cases,
impact the assumptions upon which the Plan is based.
1

Introduction
Export Development Canada (EDC) has been facilitating the international business
activities of Canadian companies for 65 years. The Corporation does this by bringing
together its financial capacity, its network of partners, and its expertise in
international trade and risk management.
As a customer-centric organization, EDC is focused on being a trusted partner to its
customers; one which uses its knowledge and understanding of their needs to deploy
innovative solutions and deliver real value. In so doing, EDC contributes to their
success and helps to strengthen Canada’s economic and financial capacity both
domestically and internationally.
This focus is more important than ever. The global economy is moving through a
period of tremendous uncertainty and volatility – although the developed world is
starting to emerge from recession, risks remain high and market capacity is tight.
Access to credit is critical to competitiveness and success during the best of times.
Today, it can be the difference between failure and survival.
2009 has been a busy year for EDC as the Corporation has played a critical role in
helping companies navigate through this period of challenge and uncertainty. The
Corporation continues to take on more risk so that it can stay in the game for its
existing customers. It is also reaching out to new customers who find it increasingly
difficult to access lending and insurance. In all cases, the Corporation continues to
rely on its expertise in risk management to guide its decision-making and to ensure
that EDC retains the capacity to respond to its customers today and into the future.
Importantly, through Budget 2009: Canada’s Economic Action Plan, EDC has been given
greater flexibility to work with companies in the domestic market. These temporary
measures, which complement EDC’s traditional export focus, will enable EDC to assist
a wider range of companies whose needs for trade-related financial intermediation
cannot be met sufficiently by the private sector.
By working closely with our financial partners, EDC is not only helping Canadian
companies survive and succeed in today’s challenging economic environment, we are
helping to strengthen Canada’s financial and economic capacity domestically and
internationally both now and in the future.
2 2010-2014 Corporate Plan Summary

Executive Summary
EDC is a Crown corporation which has been facilitating the international business
activities of Canadian companies for 65 years. In putting its customers at the centre of
everything it does, EDC has been able to contribute to Canadian companies’ productivity,
competitiveness and ultimate success and, in so doing, create prosperity for Canada.
The Planning Environment
Although the developed world is starting to emerge from recession and Canada’s
economy is in the early stages of a fragile recovery, many companies continue to face
tremendous volatility, increased risk and tightened market capacity.
The recession has significantly impacted world trade flows and Canadian exports have
fallen dramatically in 2009. EDC is forecasting that growth will return in 2010, but off
of a base that had fallen sharply and will remain below 2008 levels.
To help companies face the current economic challenges, EDC is continuing to take
on more risk so that it can stay in the game for its existing customers. It is also
reaching out to new customers who find it increasingly difficult to access lending and
insurance. In all cases, the Corporation continues to rely on its expertise in risk
management to guide its decision-making and to ensure that EDC retains the capacity
to respond to its customers today and into the future.
EDC’s Business Strategy
The 2010-2014 Plan is guided by two overarching goals: to enhance Canada’s
economic and financial capacity within a trade-focused mandate and to do so by being
a trusted partner.
The trusted partner model is the next step in EDC’s evolution towards becoming a
customer-centric organization. Importantly, however, being a trusted partner is not
seen as an end unto itself. EDC was created to support and develop Canada’s financial
and economic capacity both domestically and internationally within a trade-focused
mandate. As such all of the Corporation’s activities should be framed with this in mind.
The business strategy in this Corporate Plan is supported by EDC’s corporate capacity.
Developing Knowledge and Relationships
EDC will DEVELOP knowledge and relationships which strengthen its understanding
of the market, positioning the Corporation as a centre of expertise on trade and
investment.
Through EDC’s expertise in supply chain and global trade management and the onthe-ground
intelligence gathered from its account managers and international
representatives, the Corporation is able to assess market developments and analyze
what it means for Canada and Canadian companies.
EDC’s strong network of private and public sector partners enables the Corporation to
develop knowledge and relationships in Canada and around the world, to strengthen
3

its understanding of the market and position the Corporation as a centre of expertise
on trade and investment in order to better serve Canadian companies.
Deploying Innovative Solutions
EDC will DEPLOY innovative solutions, directly and through its network of
partners, which position Canadian companies for success and contribute to
Canadian prosperity.
EDC is deploying its lending and insurance solutions in two ways. First, through its
core mandate, EDC is continuing to respond to the export and investment needs of
Canadian companies. This remains EDC’s primary area of focus and reflects the
overriding goal of the Corporation. Second, EDC is using its broadened mandate to
enhance access to lending and insurance in the domestic market in a manner
complementary to the products and services offered by the private sector.
In both spaces, EDC continues to rely on its rigorous risk assessment and management
capabilities, and on its capital adequacy policy. The Corporation’s commitment to
sound financial management enables EDC to fulfill its mandate in a self-sustaining
manner and ensure that it is well positioned to serve existing customers and their
partners, and respond to the demands of tomorrow.
Delivering Value
EDC will DELIVER value to its customers and partners by providing exceptional
and predictable service.
EDC delivers value through reliable, timely, relevant service focused on the evolving
needs of its customers regardless of their location, segment or sector, and acts in a
manner that is socially responsible and upholds the expectations of Canadians.
Through leveraging EDC’s technology and people, the Corporation also adds value to
Canadian companies through the efficient use of its resources.
Financial Plan
EDC’s business strategy is supported by a commitment to sound financial manage -
ment. In the current environment, EDC is facing increasing demands which often fall
beyond its established risk management practices. Through the development of bestin-class
risk assessment and management capabilities and a capital adequacy policy
which supports the Corporation’s efforts to fulfill its mandate in a self-sustaining
manner, EDC is able to stand behind its customers to help Canadian companies
flourish in challenging economic conditions.
Over the past year, EDC has taken on more risk through filling gaps in the creditcon
strained capital market, by helping Canadian banks and private insurers stand by
their customers through risk sharing agreements and reinsurance, and by assuming
higher levels of risk across EDC’s existing portfolio. EDC’s financial plan addresses how
the Corporation is using its capital base to take on more risk and ultimately strengthen
Canada’s economic and financial capacity both domestically and internationally.
4 2010-2014 Corporate Plan Summary

Chapter 1
The Planning Environment
Introduction
In 2009, the global economy has experienced a downturn of unprecedented
proportions in the post-war period. Virtually every country in the developed world fell
into recession and although green shoots are beginning to emerge, most leading
economic indicators suggest more volatility lies ahead.
The effects of the global recession have been well documented. Sales have declined in
many sectors and unemployment rates have risen, hurting consumer confidence and
business investments. At the same time, the heightened risk environment and
constrained market capacity have limited many companies’ ability to access lending
and insurance. Canada’s banks have been struggling to fill the void left by the exit of
many foreign and non-traditional lenders, and as a result, Canadian companies are
continuing to experience difficulties accessing credit on affordable terms.
Not surprisingly, creditworthiness is decreasing in many sectors, notably forestry,
automotive and traditional manufacturing. The continued volatility of both
commodity prices and the Canadian dollar in early 2009 exacerbated the situation.
The recession has had a significant impact on world trade. For Canada, the numbers
are sobering, with real exports having recorded their largest one-year drop since 1975. 1
Exports to developed markets are expected to continue their decline. In emerging
markets – where trade can account for as much as 85 to 100% of GDP – slowed growth
has tempered demand for goods and services from markets such as Canada.
Despite the decline in Canadian exports levels, EDC is reporting its second most active
year to date. EDC is playing a critical role in helping Canadian companies not only
navigate through this challenging planning environment, but succeed. The
Corporation’s expertise in risk management, its relationships with domestic and
international partners and its commitment to sound financial management have
allowed the Corporation to deliver valuable services to its customers and strengthen
Canada’s financial and economic capacity, particularly with respect to trade.
The Outlook: Challenges and Opportunities
By virtually every measure, 2009 has been a difficult year for Canadian companies.
Canadian GDP is forecast to fall by 2% this year and exports are forecast to fall by 23%
– the largest one-year drop since 1975. While positive signs of economic recovery
begin to emerge over the course of 2010, Canadian companies will continue to face
significant challenges and high levels of risk into 2011.
1
EDC’s description of the planning environment is based on the fall 2009 Global Export Forecast. This forecast is available
at www.edc.ca.
Chapter 1 – The Planning Environment
5

The automotive sector is
one area where future
export rebounds will still
fall short of pre-recession
levels. Even after recovery
efforts are implemented,
exports will still be well
below average for the past
10 years.
As such, EDC is forecasting that growth will return in 2010 as governments’ various
fiscal and monetary policies gain traction, although the rates of growth will be
relatively modest compared to the 2009 declines. For Canada, this means an increase
of 5.9% in exports in 2010, but off of a base that had fallen sharply and will remain
below 2008 levels. Similarly, the growth in Canada’s GDP will not erase the declines
experienced this year. 2
Tightened liquidity in the market has taken its toll on Canada and the overall financial
health of Canadian firms. Slowing sales and decreased access to capital has made cash
flow management and supporting activities corporate priorities. A sharp increase in
consumer credit delinquency in 2010 has the potential to lead to yet another credit
crunch.
Another key contributor to the heightened risk environment has been the plunge in
commodity prices. The price of oil and other commodities such as ores, metals,
lumber and coal fell significantly in early 2009, causing considerable challenges for
exporters in the resource and extractive sectors. This drop in commodity prices did
however help to lower input costs in other sectors such as light manufacturing,
providing some relief to Canadian exporters that have been affected by the steep
decline in demand.
As 2009 draws to a close, commodity prices have made significant gains. EDC is
forecasting further modest improvements next year, although prices will remain well
below 2008 levels.
In 2010, EDC is forecasting the Canadian dollar to trade in the $0.84 to $0.86 U.S.
dollar range. This lower dollar will allow companies to price their goods and services
more competitively. At the same time, the dollar will remain at a high enough level to
help companies invest in machinery and equipment to boost productivity and pursue
opportunities to build and expand their global production and distribution networks.
Nevertheless, the dollar continues to be a major planning variable. Continued
economic insecurity – particularly in the U.S. – will result in further uncertainty. A full
discussion on EDC’s foreign exchange assumptions and the dollar’s impact on EDC’s
business performance is presented in Chapter 3.
2
A complete listing of the growth forecasts for Canadian exports by sector for developed and emerging markets is presented
in Annex II.
6
2010-2014 Corporate Plan Summary

The following chart is based on in-depth market assessments conducted by EDC’s
sector teams and summarizes the main issues facing Canadian companies in 2010.
SECTOR PLANS – OVERVIEW
SECTOR
Resources
(Bulk agriculture, meat, fisheries, forestry and all
related machinery, equipment and services)
Transportation
(Aerospace, rail, auto and other ground vehicles and
all related machinery, equip ment, components and
services)
Extractive
(Mining, petrochemicals, fertilizers, oil and gas and
all related machinery, equipment and services)
Light Manufacturing
(Consumer and secondary goods, life sciences and all
related machinery, equipment and services)
Information and
Communications Technologies
(Media and telecom, knowledge technologies and all
related machinery, equipment and services)
Infrastructure and Environment
(Utilities, construction projects, environmental,
alternative and renewable energy technology projects
and all related machinery, equipment and services)
SECTOR ISSUES
4Falling demand in forestry, pulp and paper, and fisheries
4Fisheries also challenged by withdrawal of foreign lenders
4Agriculture less impacted by economic downturn, maintaining strong international
reputation
4Increased government involvement in supporting at-risk automotive companies
4Oil price volatility creating market uncertainty for aerospace companies
4Government investments in transit projects causing high demand for rail equipment
4Suppliers looking for Canadian Direct Investment Abroad (CDIA) opportunities
beyond traditional trading partners
4Low consumer confidence, potential for additional financial shockwaves and
growing risks in emerging markets contributing to volatile commodity prices
4Tightened liquidity and depressed stock market valuations may trigger more M&A
activity
4Globalization of supply chains has many exporters moving production offshore
4Lower Canadian dollar provided some relief in the sector
4Weakened demand from traditional trading partners
4Economic downturn resulting in less money being invested in R&D
4Opportunities in IT infrastructure development in emerging markets
4Small scale of export activity relative to the global market
4Opportunities arising from government-funded infrastructure projects, used as an
economic stimulus tool
4Increased engagement in emerging markets
4Concern over rise in protectionism, particularly in U.S.
The Role of EDC
Current market challenges demand that companies re-examine their business strate -
gies in order to weather the storm. Canadian companies are increasingly broadening
their view, and prioritizing investments around business models that enable them to
do more with less, and which position them to serve a broader, more diverse network
of customers around the world. Access to financial intermediation is critical.
EDC entered 2009 confident that the investments it had made in recent years – in its
people, partners and its foreign and domestic networks; in its commitment to sound
financial management; and its focus on continued process improvement and a
commitment to efficient service delivery – positioned it well to respond to the needs of
Chapter 1 – The Planning Environment 7

Canadian exporters and to meet its goal of building a customer-centric organization
and one which is seen as a trusted partner.
The Corporation’s ability to meet these goals was further enhanced through the
increased flexibility provided in Canada’s Economic Action Plan. Given the importance
of bringing greater credit capacity to the Canadian marketplace, the Government of
Canada temporarily expanded EDC’s mandate for a two-year period to give it greater
flexibility to participate in the domestic market in a manner that is complementary to
the products and services available from commercial institutions. The Government
also suspended the regulations related to domestic financing and insurance, enabling
EDC to provide such support without having to seek Ministerial authorization. 3
As a result of the current economic environment and the measures contained in the
Budget, more Canadian companies and financial institutions are approaching the
Corporation for a wider range of support. What has this meant
4 companies require financial intermediation for more complex and riskier
transactions, including Debtor-in-Possession financing;
4 strong demand for EDC’s accounts receivable insurance – a 56% year-over-year
increase in the number of applications in the first six months of 2009; and
4 a significant increase in the volume of Canada Account transactions to
underwrite risks that go beyond EDC’s parameters.
In response to these demands, EDC has taken on more risk in its existing portfolio
and deployed more of its capital to address this growth in risk. EDC’s response is
also supported by its partnerships with other Crown corporations and government
departments, Canadian and foreign banks, surety companies and more recently, with
the private sector insurers.
In this heightened risk environment, EDC’s commitment to sound financial manage -
ment is essential, enabling the Corporation to assess risks and respond appropriately
to ensure the long-term sustainability of the Corporation. Looking ahead, EDC will
continue to adhere to its existing credit standards and due diligence processes to
ensure it can continue to respond to the long-term needs of the companies it serves,
while doing all it can to support companies with viable business plans.
As we look towards 2010, demand for EDC’s solutions – both for exports and domestic
activity – will continue to remain strong, as high levels of risk and tightened market
capacity will persist into 2011. The Business Strategy in Chapter 2 provides more
context as to the demands for EDC solutions in the domestic market, while The
Financial Plan in Chapter 3 will present the planned domestic activity for 2010-2011
and the Corporation’s projected financial performance over the planning period.
3
A full description of EDC’s expanded mandate and how it is participating in the domestic market is provided in the
Amendment to the 2009-2013 Corporate Plan, available on www.edc.ca.
8 2010-2014 Corporate Plan Summary

Chapter 2
EDC’s Business Strategy
Introduction
As the world has evolved and the needs of our customers have changed, EDC has
responded. New solutions have been developed, our network has been expanded
and partnerships have been leveraged. In recent years, this evolution has resulted
in greater focus on how EDC can be a trusted partner to its customers, partnering
financial institutions, foreign buyers and to its shareholder, the Government of
Canada.
This shift builds on a number of recent changes introduced in the Corporation over
the last five years. Efforts to strengthen and integrate business development and
underwriting capabilities, the enhancement of EDC’s regional and international
presence, strengthened relationship management and partnerships with financial
institutions, and an emphasis on process improvement, account management and
service delivery, are all aimed at making EDC a more responsive organization.
Similarly, corporate perspective on people, technology, corporate social responsibility
and risk management is increasingly viewed through the lens of our partners.
Relationships and the delivery of real, recognized value are key corporate objectives.
The trusted partner model is therefore the next step in EDC’s evolution, reflecting a
continuum of activity aimed at transforming EDC into a truly customer-centric
organization. Importantly, however, being a trusted partner is not seen as an end unto
itself. EDC’s activities in support of being a trusted partner are aligned with its broader
goal of strengthening Canada’s financial and economic capacity both domestically
and internationally within a trade-focused mandate. This is why EDC exists.
EDC is a customer-centric
organization and a trusted
partner. It uses its know -
ledge and understanding
of customer needs to
deploy innovative solutions
and deliver real value. In so
doing, it contributes to
their success and helps to
strengthen Canada’s
financial and economic
capacity both domestically
and internationally within
a trade-focused mandate.
The business strategy in this Corporate Plan reflects these goals and demonstrates how
they are supported by EDC’s corporate capacity:
4 EDC will DEVELOP knowledge and relationships which strengthen its
understanding of the market, positioning the Corporation as a centre of
expertise on trade and investment;
4 EDC will DEPLOY innovative solutions, directly and through its network of
partners, which position Canadian companies for success and contribute to
Canadian prosperity; and
4 EDC will DELIVER value to its customers and partners by providing
exceptional and predictable service.
Chapter 2 – EDC’s Business Strategy
9

The diagram below illustrates the alignment between our economic and corporate
goals, and on EDC’s capacity to deliver.
EDC’S STRATEGIC FRAMEWORK
Economic
Goal
Corporate
Goal
Corporate
Capacity
Corporate
Competencies
DEVELOPING
Knowledge and
Relationships
People
Partners
Enhancing
Canada’s Trade
Performance
EDC as a
Trusted
Partner
DEPLOYING
Innovative
Solutions
Technology
Capital
DELIVERING
Value
Process
EDC’s ability to fulfill these objectives is enabled by its people, partners, technology,
capital and process. They are the core drivers of the Corporation’s success.
The business strategy is also aligned with the objectives set out for the Corporation by
the Minister of International Trade in the June 2009 Statement of Priorities and
Accountabilities (SPA). This guidance letter outlines both the broad policy direction
of the government and the areas the government would like to see profiled in the
Corporate Plan. A summary of the SPA is presented in Annex I.
2.1 Developing Knowledge and Relationships
EDC will DEVELOP knowledge
and relationships
which strengthen its
understanding of the
market, positioning the
Corporation as a centre of
expertise on trade and
investment.
The development of knowledge and relationships is a critical part of building a
customer-centric organization. EDC’s ability to act as a trusted partner to its customers
depends on its understanding of the needs of Canadian companies and the
challenges and opportunities they face in the global marketplace.
Through EDC’s expertise in supply chain and global trade management and the onthe-ground
intelligence gathered from its account managers and international
representatives, the Corporation is able to assess market developments and analyze
what it means for Canada and Canadian companies.
EDC’s strong network of private and public sector partners enables the Corporation
to develop knowledge and relationships in Canada and around the world, to
strengthen its understanding of the market and position the Corporation as a centre
of expertise on trade and investment in order to better serve Canadian companies.
10 2010-2014 Corporate Plan Summary

Understanding and Anticipating Customer Needs
EDC is continuing to reap the benefits from the investments made in an integrated
business structure, which brings together the Corporation’s business development,
underwriting and advisory services functions in a virtual team. Through daily team
huddles, employees are better able to share information and assess customer needs.
These meetings also enable employees to more efficiently manage deal flow, allocating
necessary resources to priority areas.
This integrated structure is reflected across EDC’s six sector-based virtual teams, which
routinely conduct in-depth market assessments and develop annual sector plans which
identify the challenges and opportunities facing Canadian companies and develop
solutions to enable them to succeed. 4 These sector plans are reviewed with the Board
of Directors annually.
Likewise, EDC’s account managers are the eyes and ears of the Corporation. Through
their daily interaction with Canadian companies, EDC is able to gather on-the-ground
market intelligence and develop the industry expertise needed to enable EDC to
better serve Canadian companies.
EDC’s Account Managers and Sector Teams also deliver information, intelligence and
expertise to Canadian companies and EDC’s partners. Broadly described as
“Relationship Services,” these activities include providing market intelligence,
informal contract reviews, informational webinars on local business issues, as well as
highly valued international matchmaking events and local market information
through EDC’s web-based country portal.
Although the services are often independent of the financial products EDC provides,
they form a key part of our value proposition. The Corporation is currently exploring
ways to better package these services to ensure the optimal value is delivered to the
customer.
An update of EDC’s enhancement of its Relationship Services delivery will be
presented in the 2011-2015 Corporate Plan.
As a trusted partner, EDC must also develop the capacity to anticipate future global
trends. One way this is done is through EDC’s Global Trade Management Centre of
Innovation (GTMIC).
By taking an end-to-end view of supply chains, from suppliers to customers and
import, export and domestic elements, GTMIC seeks to develop a more complete
understanding of its customers’ and partners’ supply chains to identify market trends
and develop solutions around potential opportunities.
GTMIC’s sector supply chain analyses examine the operational business practices,
challenges and opportunities for Canadian companies in different sectors. Seven
analyses will be completed by the end of 2009 and another five are expected to be
completed in 2010.
4
An overview of current sector challenges and opportunities is provided in the table on page 7.
Chapter 2 – EDC’s Business Strategy
11

Since 2007, EDC’s GTMIC
has completed supply
chain analyses for a range
of Canadian industry
sectors, including:
aerospace, oil & gas (in
conjunction with Industry
Canada); construction;
apparel; information
technology and contract
manufacturing; specialty
vehicles; and forestry.
In 2010, the GTMIC will also continue to engage with financial institutions to better
understand how supply chain needs are shaping customer relationships and with
public sector entities to share its perspective on enhancing Canadian competitiveness
in global supply chains.
Strengthening EDC’s Network at Home and Abroad
Through the knowledge and relationships developed within our networks across
Canada and representations around the world, EDC is working to strengthen
Canada’s economic and financial capacity both domestically and internationally.
Regional Offices
EDC’s 15 regional offices across Canada are essential to developing and maintaining
close relationships with our customers. Through these relationships, EDC account
managers are able to obtain and analyze market intelligence and translate this
information to provide solutions that respond to customer needs. Similarly, the
representatives of EDC’s Canadian Financial Intermediaries Group, based in select
offices, are able to better connect with Canadian banks to understand the challenges
they face in serving their customers and assist them in their own international
business activities.
Building on the 2008 expansion of EDC’s regional offices in Windsor and Regina, an
office was opened earlier this year in Ville Saint-Laurent, Quebec to better serve
Canadian companies in Ville Saint-Laurent, the West Island, Laval, the Laurentians,
Abitibi and Lanaudière. Future openings will be considered on a case-by-case basis in
response to market demand.
As noted in the 2009-2013 Corporate Plan, the strengthening of EDC’s regional
business development capacity has been complemented by the transfer of
underwriting capacity to certain regional offices. This allows EDC to be more
accessible to its customers across Canada and enables the Corporation to provide
more timely service to Canadian companies. Assignments to regional offices are
continuing on a case-by-case basis with the goal of having 20% of EDC’s employees
located outside of Ottawa by 2013.
12 2010-2014 Corporate Plan Summary
International Representations
Since 1997, EDC has been establishing foreign representations in key emerging markets,
providing on-the-ground knowledge and business expertise to help Canadian companies
expand into new markets. EDC representatives are co-located in Canadian embassies and
consulates, working collaboratively with DFAIT’s Trade Commissioner Service (TCS).
International representatives also work to develop relationships with strategic foreign
companies, introducing them to opportunities with Canadian companies.
To better enable the Corporation to leverage strategic relationships in key markets,
EDC is moving towards a hub-and-spoke model for its foreign representation network.
By putting greater emphasis on regions and the major players within regions, EDC will

e better able to develop in-market relationships in order to pursue Canadian Direct
Investment Abroad, buyer financing and matchmaking opportunities on behalf of
Canadian companies.
To date, the Corporation’s focus has been on emerging markets. Moving forward,
EDC is looking to broaden its network and is investigating the establishment of an
EDC presence in cities in the European Union and in the United States where the
head offices of many of the top global companies are located.
By establishing representations in close proximity to the decision makers of major
international corporations, EDC can develop important relationships that will enable
them to identify and explore further opportunities for Canadian companies to
integrate into major global supply chains.
The Corporation is continuing to grow its international network with representations
opening in Lima and Istanbul in 2009. Future decisions on representations will be
made based on EDC’s assessment of its value proposition in the market, as well as the
current and potential Canadian presence.
These international representations provide a platform from which EDC can establish
and ultimately leverage relationships with key foreign buyers of Canadian goods and
services. In order to develop a stronger trusted partner relationship with our
International Strategic Accounts (ISAs) and ultimately influence procurement by
foreign companies from Canada, EDC is redefining its ISA model to include the “upand-comer”
and “high-potential” companies that are growing rapidly and are more
likely to need EDC’s financial support in the current challenging economic times.
By targeting companies that are still developing their global supply chains, EDC can
play a role in developing global champions through its financial and risk management
support. This will in turn help Canadian companies build long-term business
prospects and grow into international players, positioning them to compete and
succeed in markets around the world.
A Knowledgeable Workforce
Opportunities for learning are critical to ensuring the Corporation can deliver
optimal value to its partners and customers. One way EDC employees are able to
develop knowledge and expertise has been through postings to regional offices and
international representations. These postings enable employees to gain insight into
local business practices and opportunities for Canadian companies in key emerging
markets, making them a valuable resource for EDC customers.
To encourage employees to incorporate regional/international postings into their
career development plans and to help retain employees who have accumulated
valuable in-market experience, EDC is taking steps to ensure that meaningful job
opportunities are available upon their return to headquarters. Succession plans for
foreign and regional representatives are also being developed to ensure that a
continued level of expertise and service is available to customers in all EDC locations.
EDC has been expanding
its network of foreign
representations for over
10 years:
41997: Beijing (China)
42000: Mexico City
(Mexico), Sao Paulo
(Brazil)
42002: Monterrey
(Mexico), Warsaw
(Poland)
42004: Rio de Janeiro
(Brazil)
42005: New Dehli (India)
42006: Moscow (Russia)
42007: Shanghai (China),
Mumbai (India)
42008: Santiago (Chile),
Abu Dhabi (United Arab
Emirates), Singapore
42009: Lima (Peru),
Istanbul (Turkey)
EDC’s international
representatives develop
value-added financial
relationships with key
foreign companies around
the world, including
Pemex, Codelco, Reliance
and Petrobras. Through
these relationships, EDC is
able to identify opportu -
nities to use its financial
capacity to connect foreign
buyers with Canadian
exporters and investors,
thereby catalyzing trade
opportunities for Canadian
companies.
Chapter 2 – EDC’s Business Strategy
13

Finally, in keeping with the hub-and-spoke model, the Corporation is also moving
towards hiring more locally engaged staff in its international representations. These
representatives not only possess local market knowledge and cultural familiarity with
local business practices, their permanent status in international representations also
enables the Corporation to maintain its local network and bring stability and
efficiency to EDC’s in-market operations.
Building Strong and Lasting Partnerships
Over the years, EDC has built extensive relationships with a wide range of partners –
both private- and public-sector – to better serve the needs of its customers. By
leveraging its network of partners, EDC is able to share information and trade-related
expertise, develop market capacity and ultimately better serve Canadian companies.
As noted in the SPA, EDC will continue to work within the International Trade
portfolio to support a more effective leveraging of Canada’s resources – a key priority
for Canadian companies.
Strengthening EDC’s Relationship with Canada’s Trade Commissioner Service
Both EDC and DFAIT’s Trade Commissioner Service (TCS) are important players in
strengthening Canada’s trade capacity. Operating at different points along a
continuum, both organizations promote international trade and support the success
of Canadian exporters and investors.
In order to more effectively promote Canadian exporters, it is essential that both
organizations have strong relationships at all working levels. With this goal in mind,
EDC surveyed one third of all Trade Commissioners in 2008 to explore how the two
organizations can promote greater awareness of each others’ mandate and activities
and find opportunities for greater collaboration.
Survey results indicated that while Trade Commissioners had a general understanding
of EDC’s mandate, specific knowledge on its services and activities could be improved
in order to take advantage of opportunities to refer Canadian companies to EDC. The
survey also found that respondents were more likely to refer clients to EDC when they
had experience working with the Corporation, especially when the Trade
Commissioner was exposed to specific partnership initiatives.
Based on this detailed feedback, EDC redeveloped its training sessions in 2009. The
Corporation concluded its partnership training cycle for the first two quarters in June
2009, training close to 100 Trade Commissioners, which represent more than 10% of
the total TCS network. In 2010, EDC will continue to engage with TCS and to create
increasingly targeted and differentiated EDC-TCS training initiatives.
Both DFAIT and EDC are committed to building awareness about these activities and
the important collaborative relationship they share. To that end, both EDC and
DFAIT are highlighting the success stories arising from their relationship through
internal communications plans and joint marketing initiatives.
14
2010-2014 Corporate Plan Summary

EDC is also developing a more integrated referral process for 2010 with DFAIT’s TCS,
based on best practices of when to refer clients and how to do so. By setting clear
guidelines for referrals, both EDC and DFAIT will be able to provide Canadian
exporters and investors with a positive, supportive and more integrated experience as
they engage in foreign markets and seek out advice, guidance and targeted business
intelligence and services.
Deepening Relationships with other Crown Corporations
EDC’s ability to help Canadian exporters and investors is also supported by its
partnerships with Canadian financial Crown Corporations, such as the Business
Development Bank of Canada (BDC), Farm Credit Canada (FCC) and the Canadian
Commercial Corporation (CCC).
In 2008 and 2009, EDC and FCC have focused on developing a stronger under standing
of each other’s respective mandates, product offerings and credit processes. EDC
recently conducted a survey of FCC staff which highlighted the need for increased
awareness of each other’s services. In 2010, EDC will be implementing the recommen -
dations of the survey through shared training programs and marketing events.
In 2009, EDC and CCC have been sharing risk management frameworks and practices
with a view to ensuring a better understanding of each other’s respective products and
services and risk mitigation practices. The Corporation is also continuing its training
sessions for CCC employees, and EDC and CCC are working together on developing
joint training initiatives, including webinars, for the Trade Commissioner Service.
EDC is also working with DFAIT and the CCC through the Joint Market Development
Initiative. Through this pilot program, EDC is working with its partners to identify
potential business opportunities in Government-to-Government relations in Panama,
Peru and Colombia.
EDC also expanded its partnership activities with BDC this year, most notably through
the Business Credit Availability Program (BCAP), a consultative mechanism through
which EDC and BDC work with Canadian banks to fill gaps in capacity caused by
current market conditions. BCAP allows for early identification and triaging between
EDC and BDC. A more complete discussion of BCAP is provided on page 20 of the
Deploying Innovative Solutions section of the Plan.
Building on their engagement through BCAP, EDC and BDC are in the process of
formalizing a joint cross referral system for respective business development and
transactional support, and increasing the number of joint customer events across the
country. In the first six months of 2009, EDC and BDC conducted 95 referrals and
hosted more than 11 joint customer events. This will continue to be a priority in 2010.
EDC’s wide network of contacts in the public and private sector enables the
Corporation to assist Canadian companies in finding solutions to their business needs
even when an EDC product or service isn’t applicable. Providing information and
referrals is a key element to fostering trusted partner relationships, not only with
customers, but with other financial intermediaries and public sector partners.
Chapter 2 – EDC’s Business Strategy 15

Building Relationships with the Financial Industry
Over the past three years, EDC has built up its relationships with Canadian financial
institutions, and in particular with Schedule I banks. EDC’s strategy towards the
financial sector is based on the understanding that Canadian companies are best
served by leveraging the financial capacity and expertise of both public and private
players. Emphasis has been placed on understanding the financial sector’s needs and
expectations from EDC and developing relationships with the appropriate decisionmakers
within each institution, at all levels.
To further develop these relationships, EDC is launching a web-based portal
specifically designed for financial institutions at the end of 2009. This new tool will
considerably improve access by financial institutions to detailed information on the
coverage they or their clients receive from EDC, and will enable them to more
effectively manage the capacity made available by EDC. The portal will also be a
direct, easily accessible source of up-to-date information and expertise from EDC.
Developing Knowledge and Relationships – Key Deliverables for 2010
The following table summarizes the initiatives and activities EDC will take on in 2010
to fulfill its role as a trusted partner.
4Development of a “relationship services” package to optimize value to the customer
4Supply chain analyses in five sectors to identify the operational business practices, challenges
and opportunities for Canadian companies
4Targeting of high-growth potential ISAs for international business development
4Enhanced training and career development initiatives for EDC employees
4Continued integration of training initiatives and knowledge sharing between EDC and TCS
4Increased engagement with DFAIT, the Department of Finance and other financial
Crown corporations
2.2 Deploying Innovative Solutions
EDC will DEPLOY innovative
solutions, directly
and through its network of
partners, which position
Canadian companies for
success and contribute to
Canadian prosperity.
EDC’s ability to provide financial solutions has been critical during this period of
global recession. Across all sectors, the Corporation has been seeing increased demand
for its lending and insurance solutions despite the drop in Canada’s export volumes.
In response to this demand, EDC is deploying these solutions in two ways. First,
through its core mandate, EDC is continuing to respond to the export and investment
needs of Canadian companies. This remains EDC’s primary area of focus and reflects
the overriding goal of the Corporation. Second, EDC is using its broadened mandate
to enhance access to lending and insurance in the domestic market in a manner
complementary to the products and services offered by the private sector.
16 2010-2014 Corporate Plan Summary

EDC’s trade finance and risk management solutions fall under four product
groupings: credit insurance, financing, contract insurance and bonding, and political
risk insurance. The following describes in more detail how these solutions are being
used to facilitate trade and investment under its core mandate and under its
temporary domestic mandate.
EDC’s Core Mandate
Trade finance and risk management of exports and investments continue to be EDC’s
long-term focus and competency. EDC was created to enhance Canada’s trade
performance and the Corporation will continue to fulfill its core mandate by offering
solutions which enable Canadian companies to grow their business internationally.
Credit Insurance
Through EDC’s suite of export credit insurance products, companies are able to
manage the risks associated when selling to unknown foreign customers or those
buyers who present higher risks, and are able to extend better payment terms and
credit options to their buyers. EDC’s insurance policies cover a wide range of risks
facing exporters, including buyer insolvency.
In the current credit-constrained environment, Accounts Receivable Insurance (ARI)
has been a particularly valuable tool for Canadian companies looking to free up or
access working capital. EDC’s ARI policies provide needed leverage for companies to
work with their banks to margin insured receivables. EDC has seen a dramatic
increase in demand for its ARI policies, resulting in a 56% increase in applications in
the first six months of 2009 compared to the same period in 2008.
Looking ahead, EDC is working to build a more effective partnership model with the
private sector credit insurers to strengthen capacity in the Canadian export
receivables market.
To that end, building on the successful working relationship developed in the
domestic market (see page 21), the Corporation is engaging with the private sector to
identify how it can use its capacity and balance sheet to fill market gaps, including
through reinsurance, with the objective to grow the market in Canada, and help the
private sector maintain and build relationships with their clients and prospects.
Chapter 2 – EDC’s Business Strategy
17

Financing
EDC facilitates the export
and investment activities
of Canadian companies
competing in the global
economy. Its solutions
facilitate traditional export
trade and enable CDIA, for
companies of all sizes and
in markets around the
world.
EDC also provides financing solutions to Canadian exporters and their foreign
customers, to Canadian investors, and to financial institutions in support of Canadian
exports and foreign investments. Under its financing program, EDC provides:
4 guarantees to banks enabling them to lend more;
4 buyer financing to facilitate export sales;
4 pre-shipment financing;
4 general corporate purpose facilities;
4 project finance; and
4 equity participations.
These financing solutions facilitate greater access to working capital for companies of
all sizes, strengthen banks’ capacity to better respond to their customer’s needs, and
give exporters a competitive advantage by enabling them to bring buyer financing
capacity to the table when competing for export contracts.
Canadian companies also rely on EDC to facilitate CDIA. The effects of the recent
economic crisis on most developed economies have underscored the importance for
companies to diversify their customer base and production networks. CDIA allows
large companies to globalize their operations to lower costs, improve productivity, and
create a competitive advantage. For smaller companies, CDIA enables them to
integrate into global supply chains.
Looking towards 2010, EDC expects a certain degree of liquidity to return to the
commercial loan market, particularly for higher quality credits and strong performing
companies. However, gaps in capacity will remain for lesser grade credits and large
group lending transactions. As a result, EDC expects the overall demand for its
financing services to remain fairly constant in 2009 and 2010.
To better serve the needs
of both Canadian
companies and financial
institutions, EDC enhanced
its Export Guarantee
Program. This enhanced
program will make it easier
for financial institutions to
avail themselves of EDC’s
support, and is expected
to help SMEs access
additional capacity.
EDC also plays a valuable role in helping Canadian companies access equity.
Consistent with the Board-approved strategy, EDC’s equity program of direct and
indirect investments focuses on small and mid-sized companies in order to build nextgeneration
exporters and help mid-market companies go global.
Finally, to help Canadian companies gain access to credit during bankruptcy – a time
when it’s needed most – EDC is partnering with Brookfield Asset Management Inc.
(Brookfield) to establish Canada’s largest Debtor-in-Possession (DIP) Fund. This
investment fund will provide both DIP and where viable, pre-petition financing to
help Canadian companies rearrange through the bankruptcy process.
Contract Insurance and Bonding
EDC’s bonding products are used by companies to guarantee their contract
performance. Importantly, these products also help free up working capital.
18
2010-2014 Corporate Plan Summary

EDC also provides guarantees to private banks so they can issue guarantees to an
exporter’s customers and suppliers. By sharing risk with surety companies, EDC also
makes it easier for Canadian companies to have surety bonds issued, without tying up
a company’s cash flow.
In 2009, EDC engaged in a streamlining exercise of its bonding program, which is
delivered exclusively in partnership with financial institutions. The improved process
is being piloted in the third quarter of 2009, and will simplify administration and
accelerate turnaround. EDC will work closely with financial institutions in 2009 and in
2010 to promote both these new offerings to their clients and provide training to their
sales forces.
Political Risk Insurance
As companies diversify their supply and distribution networks and expand into new
markets, they are often exposed to political risks that can result in significant losses.
This is particularly true of emerging markets, where unpredictable political events
could adversely impact a company’s foreign operations.
Political risks have a tendency to increase in a volatile economic environment. EDC’s
Political Risk Insurance provides peace of mind to companies and their financial inter -
mediaries that, when faced with such risks, their assets will be protected overseas, enabling
them to take advantage of export and investment opportunities in emerging markets.
EDC’s Domestic Mandate
As discussed in Chapter 1, the Government of Canada provided EDC with greater
financial flexibility and broadened its mandate and scope of activity for a two-year
period to enable the Corporation to help Canadian businesses through the current
credit crunch.
As noted in the Minister’s SPA, EDC is deploying this new flexibility in areas where it
can provide the greatest value. This includes export-related activities which previously
would have been prevented by regulations (unless approved by the Minister of
International Trade and the Minister of Finance) and domestic trade-related activities
where EDC’s actions can help strengthen Canada’s economic and financial capacity.
The activities that EDC has undertaken under its new domestic mandate are comple -
mentary to that of the commercial financial institutions and commercial insurance
providers. By working in partnership with the private sector, EDC is able to fill gaps in
the credit market, helping Canadian companies and enabling private financial inter -
mediaries to stand behind their customers. EDC’s participation in the domestic market
is on a temporary basis, designed to work with the existing market, not supplant it.
Chapter 2 – EDC’s Business Strategy 19

Financing
To allow EDC to operate in a commercial space without disrupting current bank-client
relationships, the domestic activities undertaken by the Corporation have been
complementary to the products and services available from commercial financial
institutions and commercial insurance providers.
The Corporation has therefore been engaging with Canada’s banks and BDC through
BCAP. By tapping into EDC and BDC’s complementary roles and competencies, BCAP
has been able to add capacity to a credit-constrained market, allowing companies to
survive the economic downturn.
Through BCAP, EDC has been filling gaps in corporate credit through its participa -
tion in syndicated and club credit facilities. In most cases, EDC is stepping up to add
capacity missing as a result of the departure of a foreign lender. By working in
partnership with Canadian banks on a reactive basis, the Corporation is helping
private financial institutions stand by their customers, adding credit to the
marketplace without acting as a direct competitor. Demand for domestic lending
among smaller companies is being facilitated by the BDC.
EDC is also working bilaterally with private financial institutions to help ease the
credit crunch through risk sharing agreements that give banks confidence to extend
more financing to Canadian businesses. EDC’s higher risk tolerance allows the
Corporation to assist banks in supporting their customers and ensure that capacity
remains in the market.
Looking towards 2010, EDC expects demand for its domestic financing to lessen, as
most Canadian companies impacted by the credit crunch will have already received
support. Although the Corporation’s domestic mandate is in place until March 2011,
EDC is forecasting slowing demand in 2010 and into 2011 as credit conditions
gradually improve and the economy begins to recover.
Contract Insurance and Bonding
EDC’s domestic activity in the domestic surety market is driven by its partnership with
Canada’s banks and surety companies. In April, EDC announced its support to enable
up to $1 billion in reinsurance for Canadian-issued sureties and $1 billion in
guarantee capacity for bank-issued letters of guarantee. Through reinsurance, EDC is
bringing additional bonding capacity to the Canadian market across all sectors,
enabling Canada’s surety industry and banks to increase the amount of business they
can provide to their customers. EDC is adding capacity on a matching basis, covering
up to 50% of the risk of a surety bond.
The vast majority of EDC’s projected domestic bonding activity involves public-private
partnership infrastructure projects. As infrastructure projects reach the stage where
financing is required, EDC is ready to provide needed capacity when necessary.
20 2010-2014 Corporate Plan Summary

Credit Insurance
EDC has been working closely with private insurance providers to bring additional
capacity to the domestic credit insurance market. A general agreement was reached
with Canada’s private credit insurers in May to provide up to $1 billion in reinsurance
capacity. EDC’s activity is strictly complementary to that of private insurers. The
Corporation will not take on abandoned risk policies in order to prevent distortions in
the marketplace.
A Commitment to Sound Financial Management
Sound financial management is the cornerstone of EDC’s ability to deploy its
financing and insurance solutions. As market conditions remain challenging, EDC
expects that continued credit migration will require the Corporation to allocate
additional capital to manage the risks the Corporation is already supporting. This
means that the expansion of risk appetite and the overall growth in EDC’s activities
will need to be balanced against managing existing financial obligations. The
Corporation’s established asset management capacity and its expertise in risk
assessment and management will be critical tools in support of managing risks and
dealing with expanding appetite.
A more detailed discussion on EDC’s approach to risk management, its commitment
of sound financial management and EDC’s capital adequacy policy can be found in
Chapter 3.
Deploying Innovative Solutions – Key Deliverables for 2010
The following table summarizes the measures EDC uses to track its performance in
deploying innovative solutions.
Customers Served:
maintain
Total Business Volume:
4% growth
Core:
3% growth
Domestic:
33% growth
Volume in Emerging Markets: 1% growth
Partnership Activity
Volume:
3% growth
Transactions:
maintain
CDIA Facilitated
Volume:
5% growth
Transactions:
3% growth
Multiple Program Users:
4% growth
Efficiency Ratio: 20.4%
Net Income ($M): 353
Return on Equity: 5.3%
Develop a partnership model with private credit insurers in the export receivables market
Continued collaboration with Canadian banks and BDC
Chapter 2 – EDC’s Business Strategy
21

2.3 Delivering Value to EDC’s Customers and Partners
EDC will DELIVER value to
its customers and partners
by providing exceptional
and predictable service.
The delivery of real and recognized value is a critical attribute of a trusted partner. At
EDC, this means focusing not just on the deployment of solutions, but on the manner
in which they are deployed and the experience of the customer throughout their
engagement with the Corporation.
To deliver true value, the Corporation needs to provide reliable, timely, relevant
service focused on the evolving needs of its customers regardless of their location,
segment or sector. Value also means acting in a manner that is socially responsible and
upholds the expectations of Canadians.
Finally, through leveraging EDC’s technology and people, the Corporation is able to
maximize its resources in order to deliver value to Canadian companies.
Delivering a Positive Customer Experience
One of the ways EDC is working to deliver greater value to its customers is by
streamlining service delivery processes. The guiding principle behind this initiative is
“Lean Process Methodology,” which was introduced into EDC in 2007. Lean relies on
the principles of continuous improvement and increased efficiency by empowering
employees at all working levels to make decisions and work collaboratively to solve
problems.
A six-week diagnosis of
existing processes revealed
that CIB processes about
3,000 transactions a year
for 900 customers, pre -
paring the same paper -
work for each transaction
regardless of deal
complexity. To improve
efficiency, EDC has
developed and is currently
testing the effectiveness of
a more streamlined
process.
Customers report that
their experience would
be improved by better
communication, improved
response times and more
flexible products and
policies.
In 2009, EDC introduced Lean process methodology to both the Contract and
Insurance Bonding (CIB) program and to the front line customer-facing staff in
Business Development. In 2010, EDC will continue to implement Lean initiatives
throughout the CIB and Business Development programs, and may also pursue
opportunities to introduce Lean applications into the ARI program.
EDC’s Lean initiatives are being complemented by the development of service
standards. Service standards are about more than simply having standardized
turnaround times; they are about putting in place the tools that enable employees to
more directly think about their customer’s experience with EDC. This also means
bringing an integrated and clearly communicated service offering to the table – our
partners will know what we can do, on what terms, and by when.
EDC is also defining and standardizing trusted partner behaviours and
communicating these standards to employees in order to ensure predictability and
consistency in customer service among all EDC employees. Roll-out of these standards
will occur in late 2009 and into 2010.
Looking ahead, Lean workplace practices will be more readily accommodated
through the Corporation’s move to new office premises, planned for the end of 2011.
This move will consolidate all Ottawa staff into one building and is designed to enable
employees to come together and work more collaboratively through enhanced and
more numerous huddle locations, project rooms and informal meeting spaces. In
addition, enhanced videoconferencing facilities and wireless tools will support a
workforce that is more mobile and remotely distributed across Canada and around
the world.
22 2010-2014 Corporate Plan Summary

Leveraging Technology to Deliver Value
EDC’s ability to deliver value to its customers and partners is supported by a
technology strategy which aligns with the business needs of the Corporation and
which looks to dedicate its resources towards those activities which support the
customer experience.
A key enabler of EDC’s cross-corporate collaboration is its customer relationship
model, C3. Now fully on stream, C3 is providing employees with a 360 o view of the
customer, enabling them to share knowledge and fostering greater collaboration,
improved customer experience and better service. Through the use of C3, EDC has
achieved greater internal transparency with respect to customer information, which
in turn has strengthened account management and streamlined internal
communications related to customers and prospects, creating greater efficiencies.
EDC is also using technology to automate, streamline and monitor business processes
from beginning to end through its pilot Business Process Management (BPM) System.
Work is also currently underway to better integrate EDC’s web channels in order to
facilitate information sharing and deliver more efficient service to the customer.
In addition, EDC is in the process of developing a business and technology strategy
designed to streamline processes for payment and receipts for EDC’s customers and
suppliers in order to provide better service and minimize EDC’s administrative
overhead. The goal of this project is to develop a fully automated payment system.
In 2010, EDC’s Business Solutions and Technology group will continue to place
priority on those projects and activities which provide technology solutions for EDC’s
key stakeholders and which address the technology needs of employees. In terms of IT
expenditures, the Corporation is targeting a ratio of 53:47 between Value for Money
initiatives and Total Cost of Ownership initiatives (i.e., those initiatives which help
maintain an effective IT operating environment).
Promoting Corporate Social Responsibility (CSR)
Delivering value is broader than efficiency and predictability. It is also about meeting
Canadians’ expectations that EDC operates in a socially responsible manner. At EDC,
CSR means more than simple compliance with legal standards; it is an underlying
principle which guides the Corporation’s activities.
Striking the right balance between meeting the expectations of Canadians while
maintaining a level playing field, continues to be a priority for EDC. Over the past
several years, the Corporation has been continually strengthening its CSR practices in
keeping with evolving international standards (a detailed chronology of EDC’s CSR
activities is found in Annex III of the Plan).
In 2008, EDC undertook a strategic review of its CSR practices, which highlighted
three priority areas for EDC to centralize its focus in the medium-term: combating
climate change, promoting human rights and increasing transparency. These
Chapter 2 – EDC’s Business Strategy
23

priorities reflect public and social trends on emerging issues where government and
other stakeholders expect to see continuous evolution in EDC’s practices.
EDC was one of a handful
of export credit agencies
which participated in
consul tations convened by
Professor John Ruggie, the
UN Special Representative
on Business and Human
Rights.
As part of the Corporation’s environmental initiatives, EDC will continue to reach out
to its stakeholders, to benchmark with its peers, and to review and revise its
Environmental Policy, focusing on a range of issues, including climate change. EDC is
also in the process of developing a methodology to measure the greenhouse gas
emissions of its project lending portfolio.
EDC routinely conducts country- and project-level political risk assessments that analyze
factors influencing human rights conditions. Following up on stakeholder input
concerning EDC’s approach to human rights, the Corporation has broadened its
understanding of how countries and companies around the world evaluate and manage
human rights issues in business. This has enabled EDC to strengthen its own practices.
Last year EDC’s Political Risk Assessment Department strengthened its screening proce -
dures into a formalized, consistent process to determine those situations where a more
detailed human rights assessment would be required. This new standardized process for
human rights assessments is currently being implemented and will be reviewed by year
end to determine if any revisions are necessary to improve its effectiveness.
As the international community continues its dialogue on appropriate human rights
standards for corporations, EDC will continue to evolve its human rights assessment
standards to position itself as a leader among ECAs.
In 2010, EDC will not only continue its dialogue with NGO stakeholders regularly
through multilateral and bilateral meetings, it will also work to deepen its relation -
ships with key NGOs through the adoption of a Relationship Management Strategy
that will include an annual engagement strategy. This strategy is consistent with the
best practices of other financial institutions and will serve as a formal channel for
NGOs to express their views, creating greater accessibility to EDC.
Finally, EDC has long been an advocate for community investment. In 2009, the
Corporation broadened its notion of “community” to include those markets in which
it conducts business. To better serve these communities, EDC has launched a four-year
community investment partnership with CARE Canada for small business enterprise
development and micro-financing-related projects in emerging markets.
Each year EDC will assign two to four EDC staff, for four to 16 weeks, to CARE
enterprise projects such as the current EDC deployment to the Global Community
Investment Initiative in Peru for agribusiness entrepreneurs. In 2009, the first two
EDC employees completed their CARE postings in Peru.
Delivering Value through an Engaged Workforce
EDC’s people are the centre of everything the Corporation does across Canada and
around the world. It is their knowledge and expertise that is valued by Canadian
companies of all sizes.
24 2010-2014 Corporate Plan Summary

To better enable EDC to support our customers during this period of increased
demand, the Corporation has been investing in its people through a two-track strategy
of external recruitment and internal re-deployment of employees to high-demand areas.
An additional 50 current and new employees are being assigned where most needed
over the next year to ensure EDC has the human capacity to respond to market
demand for financial and information solutions.
EDC is also developing a future of work strategy to maximize employee engagement
and maintain strong levels of retention. The Corporation is working to enable a more
flexible workforce through flexible work hours and telework and is supporting all
generations of EDC employees through more flexible total compensation packages.
Delivering Value to EDC’s Customers and Partners – Key Deliverables for 2010
The following table summarizes the initiatives that EDC will take on in 2010 to fulfill its
role as a trusted partner and the measures it uses to track its ability to deliver value. A
full discussion of these performance measures is provided on pages 25-29 of the Plan.
4Maintain/Improve Net Promoter Score
4Finalization of Lean initiatives for business development and CIB teams
4Roll-out of customer service standards
4Development of a methodology to measure the greenhouse gas emissions of
EDC’s project lending portfolio
4Value for Money : Total Cost of Ownership 53:47
4Implementation of a standardized program for human rights assessment
4Maintain/Improve Employee Engagement and Retention
2.4 Measuring Success
2009 has been a challenging year for Canadian exporters and investors, financial
institutions and the foreign buyers of Canadian goods and services. The measures and
targets presented in the Corporate Plan reflect these challenges and how EDC is
responding.
EDC’s measurement program enables the Corporation to track its performance against
each of the three strategic objectives presented in the Business Strategy. It also estimates
how EDC’s activities contribute to the benefit of Canada’s economy.
The following is a description of the measures included in the 2010-2014 Corporate
Plan, EDC’s performance against these measures in 2008, and how the Corporation is
forecasted to perform in 2009 and 2010. 5
5
Please note that the forecasts described in the following section are based on projections calculated in October and may not
necessarily reflect actual year-end outcomes for 2009. Official results for 2009 will be publicly available as part of EDC’s 2009
Annual Report, to be released in Spring 2010.
Chapter 2 – EDC’s Business Strategy
25

Net Promoter Score
In 2009, EDC is continuing its use of the Net Promoter Score (NPS) as a measure of
customer loyalty and satisfaction. NPS measures EDC’s reputation and the likelihood
that its customers would recommend the Corporation to business colleagues.
Despite challenging economic conditions, EDC is on track to meet its NPS target for
2009. Although the heightened risk environment has resulted in rising insurance
premiums and increased demands for financing translating into longer turn-around
times on credit approvals, EDC’s positive endorsements by SMEs and solid reputation
among its strategic account customers have enabled the Corporation to improve its NPS
score from 2008.
Going forward, EDC will continue to work towards becoming a customer-centric
organi zation. It is therefore aiming to maintain, if not improve, its current NPS score
in 2010.
Customers Served
Customers Served tracks the number of Canadian companies currently benefiting from
or being served through one of EDC’s solutions.
Despite the stronger-than-expected finish in 2008, EDC is forecasting that it will
continue to grow its customer base in 2009. Based on a conservative estimate, the
Corporation anticipates it will serve 8,700 customers this year, representing 5% growth.
EDC is planning to maintain the number of customers served in 2010.
Multiple Program Users
One way EDC is able to fulfill its role as a trusted partner is by exposing its customers to
the breadth of EDC’s service offerings. EDC measures its success in meeting the various
needs of its customers through the number of Multiple Program Users (MPUs).
EDC is forecasting that it will meet its target of 10% growth for 2009 with 1,100 MPUs, as
the tightened credit environment has more companies looking to EDC for financing
and insurance solutions.
Through the use of C3 and enhanced collaboration with its public and private sector
partners, the Corporation aims to increase awareness about the range of EDC lending
and insurance solutions. EDC has set a target of 4% growth in the number of MPUs for
2010. Importantly, this target is being set off a base that is significantly larger than when
the measure was first introduced in 2007.
26 2010-2014 Corporate Plan Summary

Total Business Volume
EDC is forecasting total business volume will fall by 4% in 2009, with the Corporation
facilitating $82.8 billion in lending and insurance, in contrast to the 8% decline
originally targeted for the year 6 . Core export volume decreases are partly offset by EDC’s
participation in the domestic market, beginning in March 2009.
Although EDC does not use total business volume as a performance measure, the
Corporation will continue to track and report on this business indicator.
Volume in Emerging Markets
EDC is uniquely positioned to help Canadian companies take advantage of opportu ni -
ties in emerging markets through its trade finance and risk mitigation solutions.
A target of 5% growth was set for 2009 for EDC’s business volume in emerging markets
(VEM). The Corporation is forecasting that it will meet its target, facilitating $23.1 billion
of VEM despite the drop in commodity prices and overall decline in exports.
EDC is forecasting a modest growth of 1% in 2010 as Canadian companies continue to
cope with the challenges of the global economic downturn.
Facilitating Canadian Direct Investment Abroad
The Corporation measures its CDIA performance through both the number and the
total volume of CDIA transactions.
Due primarily to the significant drop in commodity prices and its impact on PRI and
financing volumes in the extractive sector, EDC’s CDIA volume is forecasted to decline
by 2% instead of the 3% growth that was projected for 2009. By end of year, EDC
anticipates facilitating $4.6 billion in CDIA volume.
Likewise, EDC will not meet its forecast of 5% growth in the number of CDIA
transactions. As was the case for CDIA volume, this shortfall is attributed to fewer
transactions facilitated under both the Financing and PRI programs in the resource
and extractive sectors.
As the global economy begins to recover from the effects of recession, EDC is fore casting
5% growth in CDIA volume and 3% in the number of CDIA transactions in 2010.
Partnering to Serve Canadian Companies
Since 2003, EDC has tracked the amount of contracted risk it assumes on behalf of
financial institutions under a number of programs. These programs provide credit
enhancements to banks and sureties, making it more attractive for them to extend
6
In the 2009-2013 Corporate Plan forecast total volume for 2008 of $78.6 billion and $72.5 billion for 2009. This represented
a year-over-year decline of 8%.
Chapter 2 – EDC’s Business Strategy
27

coverage or financing to customers. EDC measures its performance through the
number of partnership transactions it facilitates and the total volume that is generated.
EDC is forecasted to exceed its projection of 7% growth in 2009, facilitating $15.5
billion in partnership volume, an increase of 10% from 2008. The Corporation’s
performance under this measure benefited greatly from strong results on the bonding
side as well as from strong demand from EDC’s documentary credit insurance program,
which provides letters of credit risk and management solutions to banks and to cover
selective foreign bank risk.
EDC is also on track to meet its projection of 6% growth in the number of partnership
transactions it will facilitate in 2009. This has been driven by an increase in the number
of transactions resulting from the increased demand from EDC’s documentary credit
insurance program.
Leveraging Technology to Support the Business Strategy
EDC measures the allocation of IT dollars between what is known as "Value for Money"
initiatives (VfM) and "Total Cost of Ownership" (TCO). VfM refers to discretionary
technology investments that drive business value, whether by enhancing customer
service, corporate efficiency, employee satisfaction or revenue. TCO refers to techno -
logy investments that are either non-discretionary in nature or relate to maintaining
core technology assets and infrastructure. Organizations regularly review their optimal
investment allocation based on their technology requirements at the time.
Over the last several years, EDC's expenditures on VfM initiatives have been growing as a
percentage of total IT investment. In 2003, the VfM to TCO ratio was 23:77.
Conceptually, EDC sets a target ratio of 50:50 to reflect its commitment to focusing its
technology investments in support of business initiatives.
In 2009, a VfM:TCO target of 52:48 was set to place greater emphasis on resources that
will grow and transform the business, as well as reflect EDC’s ability to manage its core
costs. The Corporation is on track to meet this target in 2009 and will improve this ratio
to 53:47 in 2010.
Measuring Financial Performance
EDC measures its financial performance on three variables: the Gross Efficiency
Ratio (GER), Net Income and Return on Equity (ROE). These measures track the
Corporation’s ability to deliver value to its customers, partners and shareholder, through
sound financial management.
The GER is the ratio of gross administrative expenses to net revenue, excluding debt
relief. GER measures the operational efficiency of the Corporation as investments in
people and technology are required to keep pace with the growth and complexity of the
business.
28 2010-2014 Corporate Plan Summary

In 2009, EDC is forecasting a GER of 25.3%. This result is more favourable than planned
due to the increase in net financing and investment income, combined with the higher
than planned loan guarantee fees and insurance premiums.
Going forward, the GER will be calculated using Net Administrative Expenses, to reflect
the impact of Canada Account activity on corporate efficiency. Based on this calculation,
the new Efficiency Ratio for 2010 is forecast to be 20.4%.
EDC’s total earnings are reflected in its Net Income, the net result of the financing,
investment, insurance and risk management activities of the Corporation. In 2009, EDC
is expected to report a net income of $52 million, a decrease of $154 million over 2008
results, mainly driven by higher claims-related expenses on the insurance portfolio, as
well as additional provision expenses on the loans portfolio.
Net income is projected to increase to $353 million in 2010, driven mainly by a larger
loans receivable portfolio with higher loan spreads realized throughout 2009 and 2010.
Return on equity (ROE) measures EDC’s profitability by calculating the Corporation’s
net income after providing for future losses by way of provisions. It takes into account
both the profitability of the Corporation and the risk of the business undertaken.
ROE is forecast to be 0.8% in 2009 as a result of lower-than-planned net income for the
Corporation. In 2010, ROE will increase to 5.3% mainly due to the significant increase
in net income.
A further discussion of EDC’s financial performance is available in Chapter 3 of
the Plan.
Leveraging People
EDC’s people strategy aims to secure employee engagement and to retain the resources
needed to successfully implement the business strategy today and in future years. How
well this is accomplished is measured by employee feedback on their engagement to the
organization and by an employee retention rate.
An engaged workforce is a more productive workforce. EDC conducts an employee
survey every two years on a wide range of issues affecting the work environment and
employee engagement. The most recent survey was conducted in the fall of 2009, the
results of which will be presented in the 2009 Annual Report. EDC’s goal is to rank at a
level similar to other high quality organizations on the key drivers of employee
engagement.
EDC has had success in employee retention over the years but market conditions are
expected to remain competitive for the skills that we have in-house. Our 2008 retention
rate was 92.3% and a target of being equal to or exceeding the Conference Board
retention rate for financial institutions was set. The Corporation expects to meet this
target in 2009 and 2010.
Chapter 2 – EDC’s Business Strategy
29

The Creation of Benefits for Canada
The Corporation’s business strategy is built around two overarching goals: to be a
trusted partner and to enhance Canada’s trade performance. As such, every transaction
that EDC undertakes generates tangible benefits to Canada.
By facilitating the exports and investments of Canadian companies, EDC helps to grow
Canadian businesses, which in turn creates Canadian jobs and contributes to Canada’s
economic growth – thereby improving Canadians’ standard of living.
For some time, EDC has estimated the benefits to Canada’s economy of the exports and
investments it facilitates. Some of these benefits are quantifiable – like the Canadian
content or jobs supported by an export sale or foreign investment – while others are
more subjective in nature. Indeed, as more Canadian companies participate in
integrative trade, the nature of the Canadian benefits generated by their activity is
changing. For example, securing a world product mandate or participating in the
supply chain of a multinational company can be key to a company’s ongoing business.
These benefits are not readily quantifiable today.
Other less tangible benefits derived from EDC’s role fall under the objective of
enhancing Canada’s export capacity. This means helping small companies participate in
integrative trade and using our financial capacity to support riskier business, often in
new emerging markets.
The Canadian benefits scorecard for the past three years is presented below.
CANADIAN BENEFITS SCORECARD
($ in Billions) 2006 2007 2008
Total Volume Facilitated 66.1 70.0 85.8
Percentage of Exports Facilitated 12 14 14
SME – Number Served 5,800 6,204 6,866
SME – Volume 15.2 18.8 17.8
Volume in Emerging Markets 15.2 16.8 22.0
Contribution to Canada’s GDP 44.6 51.5 57.8
Contribution to Canada’s GDP (%) 3.8 4.2 4.4
Number of Jobs Supported 546,706 578,434 572,024
Percentage of National Employment 3.3 3.4 3.3
30 2010-2014 Corporate Plan Summary

The following table depicts EDC’s scorecard for 2010. It presents the Corporation’s
key measures of success and planning performance for the coming year.
EDC’S SCORECARD
Performance Measures 2008 2009 2009 2010
Actual Plan Forecast Plan
Net Promoter Score 69.7 7 maintain/
improve
70.3 maintain/
improve
Customers Served 8,312 maintain 8,700 maintain
Multiple Program Users (MPUs) 1,000 10% growth 1,100 4% growth
Total Business Volume ($B) 85.8 8% decline 82.8 4% growth
Volume in Emerging Markets ($B) 22.0 5% growth 23.1 1% growth
CDIA
Volume ($B)
Transactions
4.7
450 8 3% growth
5% growth
4.6
467
5% growth
3% growth
Partnerships
Volume ($B)
Transactions
14.1
4,450
7% growth
6% growth
15.5
4,884
3% growth
maintain
VfM to TCO Ratio 43:57 52:48 52:48 53:47
Financial Measures
Gross Efficiency Ratio (%) 23.3 27.6 25.3 – 9
Efficiency Ratio (%) – – 24.7 20.4
Net Income ($M) 206 148 52 353
Return on Equity (%) 3.4 2.4 0.8 5.3
Employee Measures
organizations 10
organizations
Employee Engagement – Rank same as
high-quality
– Rank same as
high-quality
Employee Retention (%) 92.3 ≥CB rate 11 meet objectives ≥CB rate
7
In 2008, we reported an NPS score of 61.1. That number was restated to 69.7 to account for the weighting methodology
introduced in 2009. The NPS is derived by weighting the results of each EDC segment (Small Business, Commercial Markets
and Strategic Accounts) equally.
8
In 2008, we reported 383 investment transactions. That number was restated to 450 to account for the inclusion of offshore
financial security guarantees.
9
In 2010 the Gross Efficiency Ratio will be replaced by the Efficiency Ratio. A full discussion of this change is available in
Chapter 3.
10
Survey is conducted every two years. Results of 2009 survey will be presented in the 2009 Annual Report.
11
Conference Board data for financial institutions suggests a rate of 90.4%.
Chapter 2 – EDC’s Business Strategy
31

32
2010-2014 Corporate Plan Summary

Chapter 3
The Financial Plan
Introduction
Since the fall of 2008, more and more Canadian companies have turned to EDC’s
solutions to help them navigate through the challenging economic environment.
Further to the guidance provided in the Minister’s Statement of Priorities and
Accountabilities, the Corporation has responded to the needs of Canadian companies
by filling gaps in the credit constrained capital market and by helping Canadian
banks and private insurers stand by their customers through risk sharing agreements
and re-insurance.
EDC’s ability to support these new demands was made possible due to our strong
capital position, including the Government’s investment of an additional $350 million
in capital as part of the November 2008 Economic and Fiscal Statement.
The preceding chapters have outlined the challenges facing Canadian companies as
the global economy begins its fragile recovery and the activities EDC is undertaking
to help its customers emerge from the recession and develop into stronger global
players. This final chapter presents EDC’s Financial Plan and addresses how the
Corporation is using its capital base to help strengthen Canada’s economic and
financial capacity both domestically and internationally.
Also included in the Financial Plan are EDC's volume projections, projected
consolidated statements of income and comprehensive income, balance sheet and
cash flow statements, as well as the Corporation’s planned capital expenditures for
2009-2014. The projected consolidated income statement and balance sheet are also
provided for the Corporation’s subsidiary, Exinvest Inc.
3.1 Assumptions
The Financial Plan is based on a series of assumptions, all of which have an impact on
the Corporation’s business activity and financial performance. First, as 2009 results are
not yet available, EDC prepares a forecast of its expected business activity and, based
on that forecast, develops projected financial statements. The 2008 actual results are
also included for information purposes.
Second, the 2010 Plan is based on the current business strategy employed by the
Corporation and on certain key assumptions, including those with respect to business
volumes, foreign exchange, risk profile, interest rates and administrative expenses. As
is the case with any assumptions, each is subject to volatility. This potential for volatility
is amplified given the current economic climate and related uncertainties. Any
changes to the Business Strategy or to the underlying assumptions may materially
impact the projections over the planning period.
Chapter 3 – Financial Plan 33

2010-2014 Volume Assumptions
As discussed in the Planning Environment chapter of the Plan, the earliest stages of
what is expected to be a fragile recovery are beginning to emerge in the wake of the
global recession. However, sustained global recovery is not expected to take effect
until the latter part of 2010 and into 2011.
As a result, Canadian companies will continue to face significant challenges and high
levels of risk into 2011 and are expected to continue to turn to EDC for its lending
and insurance solutions. When considering the steep decline in Canadian exports in
2009, EDC’s high volume is evidence that the Corporation is responding to the
demand placed upon it. In fact, in 2009 EDC is forecasting the second highest volume
in its history.
In 2009, the Corporation is forecasting that total business volume will decline by 4%
to $82.8 billion, as opposed to the 8% decline previously projected in the 2009-2013
Corporate Plan. As discussed in Chapter 2, this is partly a result of EDC’s participation
in the domestic market through its expanded mandate. In 2010, EDC is projecting
that business volumes will increase by 4% to $86.3 billion.
As mentioned previously, EDC’s temporary participation in domestic trade-related
activities has been complementary to the private sector. The Corporation is forecasting
it will facilitate $3 billion of domestic volume by year end. In 2010, domestic volume is
planned to grow to $4 billion.
Foreign Exchange Assumptions
As the majority of EDC’s business transactions are conducted in U.S. dollars, it is
important to consider the impact that fluctuations in the U.S. exchange rate may have
on Canadian companies and, by extension, EDC.
To provide an additional
perspective on how move -
ments in the Canada/U.S.
exchange rate impact EDC
and its results, a $0.01
change in either direction
in the value of the
Canadian dollar in relation
to its U.S. counterpart
translates into an appro xi -
mate $10 million change
to the Corporation’s Net
Financing and Investment
Income, all other things
being equal.
An appreciation of the Canadian dollar affects Canada’s exports in two ways. First,
since at least 70% of Canada’s exports are priced in U.S. dollars, Canadian companies
receiving U.S. dollar revenues for their exports will receive fewer Canadian dollars
when converted at a higher exchange rate. So even if there is no change in physical
volume shipments, the stronger Canadian dollar automatically translates into lower
export receipts in Canadian dollar terms.
Secondly, since most exports are priced in U.S. dollars, a higher Canadian dollar
results in decreased revenues once payments are converted back into Canadian dollars.
The result is a squeeze on profit margins. Exporters are therefore faced with a choice:
they can raise their U.S. dollar prices to account for the falling revenues, even though
it would make their exports more expensive and could slow sales; or they can look to
lower their production costs through, for example, restructuring or the use of CDIA.
The Canadian dollar is often referred to as a “commodity currency”; its value is closely
related to the price of oil and metals. This is reflected in the model EDC uses to
forecast the value of the Canadian dollar. Other variables that drive the outlook are
34 2010-2014 Corporate Plan Summary

the Bank of Canada’s non-energy commodity index for base metals, the difference
between interest rates in Canada and the U.S., and the Swiss Franc exchange rate
which captures an international benchmark for general U.S. dollar movements.
Although this model has performed historically well in predicting the value of the
Canadian dollar, higher investor activity in the foreign exchange market is also
influencing the value of the dollar. In the current environment, the U.S. dollar has
become the new “carry trade” currency. This means that because U.S. interest rates are
the lowest in the world, investors are increasingly borrowing U.S. dollars for free, and
investing in other countries – particularly commodity currencies such as the Canadian
and Australian dollars.
It is important to note that EDC’s foreign exchange assumptions represent a snapshot
in time. For planning purposes, EDC bases its assumptions off of projected exchange
rates calculated to coincide with the fall Global Export Forecast.
The Canadian dollar averaged $0.83 against the U.S. dollar for the first six months of
2009. In this Financial Plan, the assumption for the U.S. exchange rate is that U.S.
dollars are converted to Canadian dollars at an average rate of $0.85 for Forecast 2009,
$0.86 on average for the calendar year in 2010 and $0.87 for subsequent years. As
noted above, fluctuations in this rate may significantly impact EDC.
3.2 Financial Management Strategy
General Principles
The key principles underpinning the Financial Plan are EDC's commitment to
operate in a financially self-sustaining manner by managing risk effectively and its
commitment to sound financial management. Both of these areas are of increasing
importance in today’s highly uncertain economic environment. EDC’s financial
management strategy is focused on ensuring that the Corporation has at all times
sufficient financial capacity to support the ongoing fulfillment of its mandate and
respond to the evolving needs of Canadian exporters and investors.
Key elements of this strategy are:
4 obtaining returns for risk taken;
4 maintaining operational efficiency through the management of costs; and
4 managing risks appropriately.
In addition, EDC manages its capital in order to be able to support new and existing
business and to sustain the Corporation. EDC manages its capital capacity through its
Board-approved Capital Adequacy Policy (CAP). This policy measures the capital
required to support the credit, market, operational and business risks of the
Corporation. Additional capital is made available beyond that which is required to
support these core risks and is designated as Strategic Risk Capital. It is deployed to
support EDC’s strategy of broadening risk appetite in response to customer needs, as
well as allowing for volatility in core risk capital demand.
Chapter 3 – Financial Plan
35

Sound Financial Management
Sound financial management at EDC comprises three aspects:
4 Measurement of its financial performance, which forms the cornerstone of
sound financial management at EDC. The measures are consistent with
measurements used in the financial services sector;
4 A capital adequacy policy, as discussed in Section 3.5; and
4 Asset/Liability Management and Borrowing Strategies, as discussed in
Section 3.9.
3.3 Projected Consolidated Statements of Income and
Comprehensive Income
Table 1 summarizes EDC’s Projected Consolidated Statement of Income through to
the year 2014.
Table 1
PROJECTED CONSOLIDATED STATEMENT OF INCOME (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Financing and
Investment Revenue
Loan 1,350 1,502 1,352 1,445 1,916 2,097 2,229 2,274
Capital Lease 9 9 10 9 8 7 6 5
Operating Lease 43 32 44 48 52 57 57 39
Debt Relief - 8 54 7 7 - - -
Investment Portfolio 81 73 45 59 117 150 120 155
1,483 1,624 1,505 1,568 2,100 2,311 2,412 2,473
Interest Expense 611 783 412 362 827 1,200 1,238 1,283
Leasing and Financing Related Expenses 38 47 59 58 53 47 43 41
Net Financing and
Investment Income 834 794 1,034 1,148 1,220 1,064 1,131 1,149
Loan Guarantee Fees 1 19 17 25 23 22 22 22 23
Insurance Premiums and
Guarantee Fees 1 172 162 194 225 231 240 250 262
Other Income (Expense) (11) (15) (126) - - - - -
1,014 958 1,127 1,396 1,473 1,326 1,403 1,434
Provisions for Credit Losses 346 464 569 550 324 271 270 163
Claims-Related Expenses 1 222 88 248 210 102 70 87 89
Administrative Expenses 240 258 258 283 293 305 317 329
Net Income 206 148 52 353 754 680 729 853
1
The 2009 Corporate Plan Income Statement presentation has been changed to conform with the presentation adopted for the 2008 actual results. This included the
following changes: a reclassification of $88 million from Provisions for Credit Losses to Claims-Related Expenses and Loan Guarantee Fees were previously included in
Insurance Premiums and Guarantee Fees and are now shown separately.
36 2010-2014 Corporate Plan Summary

The Corporation is forecasting net income in 2009 of $52 million which represents a
reduction of $96 million from the 2009 Corporate Plan.
4 Net financing and investment income for 2009 is forecast to be $1,034 million,
a $240 million increase over the 2009 Corporate Plan. Many factors have
contributed to this increase. The major factors are a weaker forecast Canadian
dollar (when compared to the 2009 Corporate Plan), higher debt relief and
higher impaired revenue. Also contributing to the increase are higher spreads
on new loans as a result of the recent credit crunch, partially offset by higher
spreads on new long-term debt issues.
4 Insurance premiums and guarantee fees are forecast to be $194 million which
is $32 million higher than the 2009 Corporate Plan. This forecast increase in
revenue is due mainly to the $7.8 billion increase in insurance volume over
Plan and, to a lesser extent, due to a forecast increase in credit insurance
premium rates due to the current riskier credit environment.
4 The other expenses line item in the income statement is mainly comprised of
fair value adjustments on long-term debt and related derivatives, as well as
foreign exchange translation gains and losses. Due to the volatility and
difficulty in estimating these amounts, no forecast amount for any future
period is included in the financial results. As such, the amount included in the
forecast for 2009 of $126 million represents year-to-date results to August 31,
2009. The $126 million of other expenses in the 2009 forecast represents an
increase of $111 million over the 2009 Corporate Plan expense of $15 million.
The key components include unrealized fair value losses on long-term debt
and related derivatives ($185 million) and foreign exchange translation gains
($76 million) which are offset against foreign exchange translation losses
included in Other Comprehensive Income ($74 million).
4 Provisions for credit losses for 2009 are expected to be $569 million, an
increase of $105 million from the 2009 Corporate Plan. Provision expense
resulting from credit migration is projected to be higher than planned,
particularly in the automotive and foreign financial institution sectors due to
the challenging economic environment.
4 Claims related expenses are forecast to be $248 million which is $160 million
higher than the 2009 Corporate Plan of $88 million due in part to forecast
higher claims and expected losses relating to the automotive industry, as well
as to expected losses as a result of the general economic downturn.
In 2010, it is planned that net income will be $353 million representing an increase of
$301 million from the 2009 forecast.
4 Net financing and investment income for 2010 is forecast to increase by
$114 million from the 2009 forecast. The increase is mainly driven by a larger
loans receivable portfolio with higher loan spreads realized throughout 2009
and 2010, which are increasingly funded by short-term debt at lower yields.
Chapter 3 – Financial Plan
37

4 Insurance premiums and guarantee fees are planned to be $225 million, an
increase of $31 million from the 2009 forecast. The increase is primarily the
result of projected higher credit insurance premium rates due to the current
riskier credit environment.
4 As stated above, forecasts of future unrealized fair value gains/losses on longterm
debt and derivatives, and foreign exchange translation gains/losses are
not included in the financial projections due to the volatility and difficulty in
estimating these items. As such, other expenses for 2010 are planned to be
zero compared to the 2009 expense of $126 million. EDC’s financial results
could vary significantly as a result of these items.
4 The planned administrative expenses for 2010 are $283 million, a $25 million
increase over 2009, largely the result of projected increases in human
resources costs, depreciation, rent and systems costs. This higher level of
expenses is mainly due to EDC’s shift toward a more customer centric model
as well as the impact of the current economic environment. Increased
investment in EDC’s business development capability has led to deployment of
additional resources, increased technology and expansion of regional offices
and international representation. The current economic environment has
resulted in higher demand for EDC’s services, as well as additional effort to
manage our existing loans and insurance portfolio.
Table 2 summarizes EDC’s Projected Consolidated Statement of Comprehensive
Income through to the year 2014.
Table 2
PROJECTED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Net Income 206 148 52 353 754 680 729 853
Other Comprehensive Income
Net Unrealized Gains (Losses) on
Available-for-Sale Marketable Securities 152 (14) (84) - - - - -
Reclassification of Losses on Available-for-Sale
Marketable Securities to Income (16) - - - - - - -
Other Comprehensive Income (Loss) 136 (14) (84) - - - - -
Comprehensive Income (Loss) 342 134 (32) 353 754 680 729 853
38
2010-2014 Corporate Plan Summary

3.4 Projected Consolidated Balance Sheet and Statement of
Changes in Shareholder’s Equity
Forecast 2009 loans receivable are $32.8 billion, $3.0 billion (10%) higher than the
2009 Corporate Plan, primarily due to a $4.4 billion increase in the 2009 opening
balance, partially offset by a $1.3 billion foreign exchange impact due to a weaker
Canadian dollar.
Planned 2010 loans receivable are $36.9 billion, $4.1 billion (13%) higher than the
2009 forecast of $32.8 billion. This is mainly due to net disbursements in 2010 of $5.2
billion partially offset by a decrease of $1.0 billion due to the forecast appreciation of
the Canadian dollar.
Our corporate borrowings, characterized as Loans Payable on the Balance Sheet, are
forecast to be $29.0 billion in 2009, $4.0 billion (16%) higher than the 2009
Corporate Plan of $25.0 billion. This is mainly due to the weaker Canadian dollar,
higher investment levels on increased liquidity requirements, and a higher 2009
opening loans receivable balance.
Forecast 2010 loans payable are $32.9 billion, $3.9 billion (13%) higher than the 2009
forecast of $29.0 billion. This is mainly due to net disbursements in 2010 and higher
investment levels on increased liquidity requirements, which are partially offset by a
forecast appreciation in the Canadian dollar.
EDC’s Equity program is reflected on the balance sheet as Equity Financing. Total
equity commitments are divided between the fair value of funded transactions that are
included on the balance sheet and unfunded commitments that are not recorded on
the balance sheet. The unfunded commitments are expected to be advanced over
timeframes of up to 12 years, in accordance with the investment terms per each
investment commitment. Overall commitments (funded and unfunded) are forecast
to be approximately $700 million, with the funded portion in the range of $270 million,
at the end of 2009. In 2010, the overall commitments are projected to grow to
approximately $990 million, with a funded portion of $430 million.
Chapter 3 – Financial Plan 39

Table 3 summarizes EDC’s Projected Consolidated Balance Sheet through to the year
2014.
Table 3
PROJECTED CONSOLIDATED BALANCE SHEET (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
ASSETS
Cash and Investments
Cash 1 188 46 86 86 86 86 86 86
Marketable Securities 1 – Available-for-Sale 462 814 892 866 866 866 866 866
Held-for-Trading 3,193 1,238 2,942 3,209 3,508 4,020 4,368 4,531
3,843 2,098 3,920 4,161 4,460 4,972 5,320 5,483
Financing and Leasing Assets
Loans Receivable 30,209 29,762 32,778 36,880 39,522 41,952 43,829 45,160
Allowance for Losses on Loans (1,928) (2,117) (2,220) (2,693) (2,731) (2,684) (2,800) (2,772)
Risk Mitigation Insurer’s Share of Loan Allowance - 45 - - - - - -
Equity Financing Designated as Held-for-Trading 150 306 268 431 589 708 747 854
Net Investment in Capital Leases 142 121 128 114 104 92 80 67
Equipment Available for Lease 334 254 328 308 289 270 251 232
Accrued Interest and Fees 299 323 207 269 293 259 241 210
29,206 28,694 31,489 35,309 38,066 40,597 42,348 43,751
Other
Recoverable Insurance Claims 39 40 44 44 44 44 44 44
Reinsurers’ Share of Allowance for Claims 157 109 145 145 145 145 145 145
Property, Plant and Equipment 1 15 22 21 45 68 63 61 58
Intangible Assets 1 36 42 42 46 49 48 45 44
Derivative Instruments 1,830 1,849 2,078 2,078 2,078 2,078 2,078 2,078
Other Assets 1 130 82 108 80 54 60 65 70
Total Assets 35,256 32,936 37,847 41,908 44,964 48,007 50,106 51,673
LIABILITIES AND SHAREHOLDER’S EQUITY
Liabilities
Loans Payable – Designated as Held-for-Trading 24,426 23,641 27,559 31,755 34,256 38,187 39,923 41,043
Loans Payable – Other 1,456 1,323 1,399 1,174 1,174 23 23 23
Accounts Payable and Other Credits 1 227 156 208 120 130 159 172 185
Deferred Insurance Premiums 1 69 63 86 95 93 93 96 99
Derivative Instruments 1,400 317 461 461 461 443 443 443
Allowance for Losses on Loan Commitments
and Guarantees 807 647 871 791 749 667 621 611
Allowance for Claims on Insurance 755 580 829 868 895 900 937 976
29,140 26,727 31,413 35,264 37,758 40,472 42,215 43,380
Shareholder’s Equity
Share Capital 983 983 1,333 1,333 1,333 1,333 1,333 1,333
Retained Earnings 5,077 5,254 5,129 5,339 5,901 6,230 6,586 6,988
Accumulated Other Comprehensive Income 56 (28) (28) (28) (28) (28) (28) (28)
6,116 6,209 6,434 6,644 7,206 7,535 7,891 8,293
Total Liabilities and Shareholder’s Equity 35,256 32,936 37,847 41,908 44,964 48,007 50,106 51,673
1
The 2009 Corporate Plan Balance Sheet presentation has been changed to conform with the presentation adopted for the 2008 actual results. This included the
following changes:
• T-bills of $457 million were reclassified to Marketable Securities - Held for Trading;
• Property, plant and equipment and Intangible assets were previously included with other assets and are now shown separately; and
• Deferred insurance premiums were previously included with Accounts payable and other credits and are now shown separately.
40 2010-2014 Corporate Plan Summary

Table 4 summarizes EDC’s Projected Consolidated Statement of Changes in
Shareholder’s Equity through to the year 2014.
Table 4
PROJECTED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER’S EQUITY (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Share Capital 983 983 1,333 1,333 1,333 1,333 1,333 1,333
Retained Earnings
Balance Beginning of Year 5,121 5,254 5,077 5,129 5,339 5,901 6,230 6,586
Net Income 206 148 52 353 754 680 729 853
Dividend Paid (250) (148) - (143) (192) (351) (373) (451)
Balance End of Year 5,077 5,254 5,129 5,339 5,901 6,230 6,586 6,988
Accumulated Other
Comprehensive Income
Balance Beginning of Year (80) (14) 56 (28) (28) (28) (28) (28)
Other Comprehensive Income 136 (14) (84) - - - - -
Balance End of Year 56 (28) (28) (28) (28) (28) (28) (28)
Retained Earnings and Accumulated
Other Comprehensive Income 5,133 5,226 5,101 5,311 5,873 6,202 6,558 6,960
Total Shareholder’s Equity
at End of Year 6,116 6,209 6,434 6,644 7,206 7,535 7,891 8,293
3.5 Economic Capital
Capital Adequacy Policy and Dividends
As mentioned in Section 3.2, the CAP is a fundamental component in EDC’s overall capi -
tal management framework. The goal of the Policy is to support EDC’s Business Strategy
by ensuring that EDC has adequate capital to support its current and future business.
At its foundation, the CAP has a guiding philosophy and set of principles that balance
the requirement for EDC to fulfill its public policy mandate while remaining
financially self-sufficient. The CAP also contemplates the need for EDC to maintain
sufficient capital to protect the Corporation from risk uncertainties.
Capital determines the capacity of EDC to fulfill its public policy mandate and sustain
the Corporation into the future. A key principle is the establishment of a target
solvency standard for EDC that determines the level of capital that is required to cover
its exposures even in exceptional circumstances. The established standard of a
solvency level consistent with a AA credit rating aligns with market practice of leading
financial institutions and with the key principles of financial self-sufficiency.
Both EDC’s demand for capital and its supply of capital are calculated using
methodologies that are generally consistent with the Basel II framework. EDC defines
capital supply as the sum of total shareholder’s equity and allowances, as determined
in accordance with Canadian Generally Accepted Accounting Principles (GAAP).
Chapter 3 – Financial Plan
41

Under the capital management framework, EDC determines whether it has adequate
capital by comparing its supply of capital to its demand for capital. Demand for capital
arising from credit, market, operational and business risk is quantified using rigorous
models and practices. In addition, a further portion of available capital is also
allocated for strategic risks and market volatility.
EDC measures and reports changes to capital supply, capital demand and its implied
solvency rating to executive management monthly. These capital measures are
reported to the Board quarterly together with forward looking stress tests which model
the potential impact on capital of portfolio migration and other key risk events. EDC
is currently implementing a technology tool that will provide broader scenario analysis
and stress testing capabilities in the future.
EDC’s capital is first and foremost available to support Canadian exporters and investors
for the benefit of Canada, and it is EDC’s intention to fully utilize its capital in support
of its mandate. The CAP does, however, recognize that there may be situations in which
its Board of Directors may authorize a dividend payment from surplus capital. There -
fore, the CAP includes a potential eligible dividend methodology to guide the Board of
Directors in determining the dividend amount that the Corporation can afford to pay.
The amount of the eligible dividend is determined by a methodology that is based on
the net income and the capital base of the Corporation and includes a forward
looking test. The 2010 forecast eligible dividend relating to the 2009 fiscal year is $143
million. Since 2002, EDC has paid a total of $695 million in dividends to the
Government of Canada.
42 2010-2014 Corporate Plan Summary

3.6 Projected Consolidated Cash Flow Statement
Table 5 summarizes EDC’s Projected Consolidated Cash Flow Statement through to
the year 2014.
Table 5
PROJECTED CONSOLIDATED CASH FLOW STATEMENT (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Cash Flows from (used in)
Operating Activities
Net Income 206 148 52 353 754 680 729 853
Provision for Credit Losses 346 552 569 550 324 271 270 163
Actuarial Increase in the allowance for claims 146 - 74 39 27 5 37 39
Depreciation and amortization 40 47 52 58 35 32 19 19
Change in derivative instruments receivable 1 (169) - (163) - - - - -
Change in derivative instruments payable 1 (1,147) - 284 - - - - -
Changes in operating assets and liabilities
and other 628 (47) (355) (115) (35) 67 28 55
Net Cash from Operating Activities 50 700 513 885 1,105 1,055 1,083 1,129
Cash Flows from (used in)
Investing Activities
Financing disbursements (13,324) (11,408) (14,845) (18,074) (16,687) (17,391) (17,564) (17,914)
Financing repayments 6,597 7,722 11,280 12,893 13,756 14,599 15,522 16,399
Net equity (disbursements)/receipts (91) (126) (128) (163) (158) (119) (39) (107)
Net (purchase)/sales of marketable securities (805) 17 (179) (241) (299) (512) (348) (163)
Net Cash used in Investing Activities (7,623) (3,795) (3,872) (5,585) (3,388) (3,423) (2,429) (1,785)
Cash Flows from (used in)
Financing Activities
Issue of Long-Term Loans Payable 7,255 6,343 7,745 8,058 7,628 7,621 10,861 10,731
Repayment of Long-Term Loans Payable (3,320) (2,316) (3,248) (5,710) (5,680) (5,015) (9,137) (9,396)
Change in Short-Term Loans Payable 2,972 (784) (1,249) 2,495 527 113 (5) (228)
Change in Derivative Instruments Receivable 1 613 - (175) - - - - -
Change in Derivative Instruments Payable 1 305 - (166) - - - - -
Issue of share capital - - 350 - - - - -
Dividends (250) (148) - (143) (192) (351) (373) (451)
Net Cash from Financing Activities 7,575 3,095 3,257 4,700 2,283 2,368 1,346 656
Effect of Exchange Rate Changes on Cash
and Marketable Securities 13 - - - - - - -
Net Increase (Decrease) in Cash 15 - (102) - - - - -
Cash
Beginning of Year 173 503 188 86 86 86 86 86
End of Year 188 503 86 86 86 86 86 86
Net Increase (Decrease) in Cash 15 - (102) - - - - -
1
Amounts based on actual results YTD – derivatives are not forecast in the model, they are simply held constant at YTD amounts throughout the entire planning period.
As such, there is no change in these items beyond 2009.
Chapter 3 – Financial Plan
43

3.7 Capital Expenditures
Table 6 summarizes EDC’s Projected Capital Expenditures from 2008 to 2014.
Table 6
PROJECTED CAPITAL EXPENDITURES (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Future Head Office 0.7 6.2 3.6 24.5 39.2 - - -
Facilities 2.0 2.4 2.5 2.8 2.1 1.3 2.8 1.3
Information Technology 23.3 21.9 21.9 21.9 27.2 19.0 18.0 23.0
Total Capital Expenditures 26.0 30.5 28.0 49.2 68.5 20.3 20.8 24.3
Capital expenditures are forecast to be $28 million in 2009, $2.5 million under Plan.
In 2010, these expenditures increase $21.2 million to $49.2 million. This increase is
predominantly attributed to costs associated with EDC’s future head office.
Future Head Office
As discussed earlier in the Plan, EDC will be moving to a new head office at the end of
2011 in order to consolidate all Ottawa staff into one building and provide an
environment that is more open, flexible, collaborative and environmentally friendly.
Future head office expenditures in 2010-2011 include EDC’s costs to construct the
interior space, provide the necessary technology infrastructure, consulting services
and all moving costs associated with EDC’s new building.
Facilities
The 2009 forecast for facilities is consistent with Plan. In support of EDC’s overarching
strategy, EDC is aligning more of its people and resources within regional
offices to provide a more consistent customer and employee experience. As a result,
the Corporation continues to open more regional representations (both domestically
and internationally) and is re-branding the offices to new interior design and space
allocation standards. Employee mobility, which facilitates even greater face to face
effectiveness with our customers, has been further enhanced with the deployment of
better technology and information systems, and is an important consideration in
reshaping EDC facilities to reflect these new work patterns.
Information Technology
Information technology expenditures for 2009 are forecast to be on plan. With C3, a
Customer Relationship Management solution deployed, EDC can focus on integrating
and leveraging existing business applications across the customer value chain. Busi -
ness Application Redesign is intended to support core value chain process efficiencies,
simplify EDC’s business architecture and help manage key business assets.
44 2010-2014 Corporate Plan Summary

In 2010, EDC must replace its current credit risk rating engine, which will be going off
support. As a result, the Business Application Redesign priority will be on implemen -
ting a corporate Obligor Service to consolidate external credit data sources, centralize
information relating to obligor ratings and exposures, and potentially share common
credit assessment functionality across the business groups.
During the planning period, technology investments will also be made to support
EDC’s relocation to new head office premises, while ensuring technology risks are
appropriately addressed. Activities are underway to plan the communications and
technology features of the new head office, including IT security and business
continuity and effort in this regard will increase through the procurement and
installation phases. EDC will continue to make effective infrastructure decisions and
coordinate infrastructure purchases in the context of the 2011 move.
There is a well-developed governance structure to plan, authorize and monitor the
portfolio of technology capital expenditures. The executive IS Steering Committee
and the Business Architecture Review Committee, comprised of senior management
representatives, are responsible for ensuring that projects with a strong connection to
EDC’s goals and objectives are given first priority. The approval of specific technology
initiatives is provided by the Board of Directors, EDC executive or management level,
depending on the project cost. Assessment of the benefits realized is to be conducted
by the business owner upon project completion. Finally, an enterprise portfolio
management office reinforces business management and project management
disciplines, manages the portfolio of technology projects from the perspective of value
for money, and balances the technology demand and capacity.
3.8 Accounting Policies and Future Accounting Changes
The accounting policies used in the preparation of this Financial Plan are in accordance
with Canadian Generally Accepted Accounting Principles (GAAP) and are consistent
with those noted in the Corporation’s Annual Report. The policies, which are similar in
approach to those of other financial institutions, reflect the long-term nature of EDC’s
business and are prudent in light of the risks associated with its unique portfolio. The
earnings of the Corporation and its subsidiary are not subject to the requirements of the
Income Tax Act.
Future Accounting Changes
Effective January 1, 2011, the Canadian Institute of Chartered Accountants will adopt
International Financial Reporting Standards (IFRS) as Canadian GAAP for publicly
accountable enterprises. EDC is currently on track to meet the implementation
deadline.
Throughout 2008 EDC completed a high-level diagnostic, during which each standard
was considered and assessed for its potential impact on the financial results and the
level of implementation difficulty. A project plan was then drafted to enable the
Corporation to fully implement IFRS by January 1, 2011 and a project management
office responsible for oversight of the progress against the plan was established. EDC
Chapter 3 – Financial Plan
45

also retained a national accounting firm to provide technical interpretation and
project management advice.
An in-depth assessment of the differences between Canadian GAAP and the IFRS
standards currently in effect has now been completed. All policy choices have been
made and the accounting group is currently modifying the processes, procedures and
systems in order to meet the implementation deadline, including the preparation of
an opening balance sheet as at January 1, 2010. The areas most significantly impacted
by the migration to IFRS include equipment available for lease, financial instruments,
post-retirement benefits and impaired assets.
The International Accounting Standards Board (IASB) has several projects underway,
some of which will impact the standards relevant to EDC. In particular, we are closely
monitoring the progress of IASB projects on insurance contracts, financial
instruments, employee benefits, leases and revenue. Any revisions made to these
standards could potentially have an impact on EDC’s financial statements and may
necessitate a review of the conclusions reached.
Based on the standards in effect at the present time, it is not expected that the
required changes in accounting policies will have a significant impact on either the
financial results or capital requirements; however, there will be adjustments to the
opening equity balance upon the implementation of these standards. Due to the
nature of the expected adjustments, a quantification of the impact of the accounting
changes has not been possible and as a result has not been included within this
Corporate Plan.
3.9 Asset Liability Management and Borrowing Strategies
In accordance with the Export Development Act (ED Act)and the Financial Administration
Act (FAA), EDC raises its funding requirements in international and domestic capital
markets through borrowings by any appropriate means, including issuing bonds,
commercial paper or other debt instruments. EDC’s objective is to borrow at an
attractive cost of funds relative to the market while prudently managing interest rate,
foreign exchange and credit risks arising from its Treasury operations.
Asset Liability and Market Risk Management
EDC manages its exposures to interest rate, foreign exchange and credit risks arising
from its Treasury operations utilizing a policy framework, including risk and liquidity
limits, which is consistent with industry practices and approved by the Corporation’s
Board of Directors. The policy framework is compliant with the Minister of Finance
Financial Risk Management Guidelines for Federal Entities (FRMG).
Market risk is the potential for loss as a result of movements in interest and foreign
exchange rates. EDC is exposed to movements in interest rates and the impact they
have on the Corporation’s book of assets, as well as its liability positions. EDC is
exposed to foreign exchange risk as it reports its financial results and maintains its
46
2010-2014 Corporate Plan Summary

capital position in Canadian dollars, whereas its asset book and much of its liabilities
are in U.S. dollars or other currencies.
Through its policies and procedures, EDC ensures that market risks are identified,
measured, managed and regularly reported to management and the Board of
Directors. EDC’s Market Risk Management Policy sets out interest rate and foreign
exchange risk limits, and exposure to market risk arising from any mismatch between
assets and liabilities is managed within these limits. EDC believes that prudent funding
and risk management at the portfolio level, rather than the matching of individual
assets with specific liabilities, provides management with the flexibility to achieve
attractive funding costs while managing market risks within EDC’s policy
requirements. EDC manages its exposure through its funding strategy and using
derivatives to hedge exposures.
Credit risk from Treasury activities arises from two sources: investments and
derivatives. In each case, there is a risk that the counterparty will not repay in
accordance with contractual terms. The Market Risk Management Policy establishes
minimum counterparty credit rating requirements and maximum exposure limits for
the management of credit risk. In addition to limits, EDC utilizes other credit
mitigation techniques to assist in credit exposure management.
EDC continually monitors its exposure to movements in interest rates and foreign
exchange rates as well as its counterparty credit exposures. Positions against policy
limits are reported on a monthly basis and any policy breach is immediately reported
directly to the Chair of the Board of Directors. EDC’s Asset Liability Committee meets,
at least quarterly, to review current and future compliance with the Corporation’s
Market Risk Management policies. EDC’s market risk positions are reported quarterly
to the Risk Management Committee of the Board of Directors.
Borrowing Strategies
Statutory borrowing authorities
The ED Act permits the Corporation to borrow and have outstanding loans payable up
to a maximum of 15 times the aggregate of its current paid in capital and retained
earnings which is determined in accordance with the Corporation’s previous year’s
audited financial statements. Based on the 2009 forecast, the maximum limit for 2010
is estimated at $96.5 billion, compared to loans payable at year end of $32.9 billion.
Borrowing Approach
EDC funds its cash requirements in international capital markets through borrowings
by any appropriate means, including, but not limited to, issuing bonds, debentures,
notes and other evidence of indebtedness. The borrowing strategy necessitates
balancing internal cash and asset-liability management requirements while remaining
flexible to accommodate market conditions and investor sentiment. Diversification is
sought to ensure access to funds during times of market stress.
Chapter 3 – Financial Plan 47

The tactical borrowing strategy is influenced by external market conditions. The
execution of the funding strategy takes into consideration, among other factors,
prevailing and forecasted interest rates, credit conditions, market liquidity and the
risk appetite of the investor community. The Treasury management team monitors
the execution of the borrowing and liquidity strategies on a daily basis and provides a
monthly report to senior management, as well as on a quarterly basis to the Audit
Committee of the Board.
As a constant presence in the markets, EDC is interested in the successful
performance of its issues from launch until maturity. Consequently, the secondary
market performance of its bonds is monitored. EDC works with its dealers to ensure
the requirements (currency, maturity, structure and liquidity) of its institutional and
retail investors are being met.
Derivatives are used to achieve reduced fixed rate or floating rate funding levels, as
well as for asset liability management purposes. EDC Treasury does not enter into
Derivative or Structured Note transactions whose value and hence financial risk it is
unable to calculate, monitor and manage internally on a timely basis.
As a back-stop to the borrowing strategy, EDC maintains a liquidity portfolio that
allows the Corporation to bridge unfavourable market conditions or respond to rapid
changes in demand for asset funding. EDC solely manages the liquidity position to
support the Corporation’s capacity to fulfill its mandate.
Borrowing Tactics
Commercial Paper (CP) is the primary tool that the Corporation uses on a daily basis
to meet operational cash requirements. This Program operates with an international
reach and the amount outstanding is typically managed within a range. The floor of
the range is driven by the requirement to maintain a daily presence. As a general rule,
the upper end of the operating range is targeted as 40% of total liabilities. The
current operating range is U.S. $1.5 billion to U.S. $5.5 billion (40% of total
liabilities). In addition, commercial paper authority is sought to allow some flexibility
around the operating range and to ensure that EDC can respond to a rapid escalation
in draw downs of revolvers. It is typical for the CP Program to grow in size as loan
disbursements occur and then to be reduced when EDC issues securities in the Capital
Markets. EDC normally keeps a buffer against the authorized limit to ensure that it
has the flexibility to respond quickly to cash requirements.
EDC maintains a flexible and diversified approach to borrowing by monitoring
international capital markets for opportunities to enhance its borrowing program or
to support its asset-liability management. Long-term funding is achieved using a
number of instruments in the international marketplace including, but not limited to,
benchmark transactions, public bonds, medium-term notes and private placements.
Term markets are evaluated on an ongoing basis to support decisions concerning
timing of issuance. The tenor of liabilities is guided by relative costs, general market
conditions, forecast balance sheet growth and asset-liability requirements.
48
2010-2014 Corporate Plan Summary

Funding diversification is another key consideration of EDC’s funding strategy. EDC’s
ability to generate funding from a broad range of sources in a variety of geographic
locations over a spectrum of terms enhances financial flexibility and limits
dependence on any one source.
Borrowing Requirements and Link to Corporate Activity
The Corporate Plan for 2010 projects a minimum long-term borrowing requirement of
U.S. $7 billion. The nature of the requirements (outlined in Table 7) will give Treasury
the flexibility to reduce CP in response to increased loan disbursements.
Treasury expects short-term outstandings to fluctuate during 2010. CP outstanding will
increase as loan disbursements occur and then be reduced when EDC issues securities
in the Capital Markets. Both the long-term borrowing requirements and the shortterm
program are expressed in U.S. dollars as EDC’s borrowing authorities are
established in U.S. dollars.
Net loan disbursements (loan disbursements less loan repayments) continue to be the
primary component of the borrowing requirements. Net loan disbursements are a
function of financing volumes.
Short- and long-term debt maturities, which are reflective of past borrowing activities,
are the second largest component of the long-term borrowing requirements.
Projections on the amount of long-term debt that will be called are made based on
historical trends and market conditions.
Treasury expects to continue to explore a debt buyback program for 2010. This program
was initiated in 2009 with the aim to lower and smooth debt maturities or to take
advantage of lower interest rates. This would lead to accelerated funding requirements.
Similar to the long-term funding, the primary driver of the short-term program is loan
disbursements followed by long-term debt maturities. The timing and amount of longterm
funding are also significant since the proceeds are used to pay down the CP
outstanding. Disbursements under normal market conditions are included in the
Plan. However in stressed market conditions, EDC disbursements may increase
rapidly. Thus, in requesting the CP authorizations, EDC looks for CP funding to
potentially cover 50% of current obligations under normal market conditions and to
cover undrawn revolver commitments.
EDC currently has U.S. $4 billion of undrawn revolver commitments with a typical
drawdown notification of two days. With CP investor focus on safety of principal rather
than yield, the ability for corporate CP issuers to access short-term funding has been
impacted. Financial institutions in particular have been hard hit which has translated
to a tightening of their lending practices. Companies are now forced to look at all
sources of available liquidity including their undrawn revolvers. In the short-term
markets, EDC has proven that it can quickly and cost effectively access CP markets
during periods of market stress. Given the maturity profile of these types of lines of
credit, the Commercial Paper program is the preferred funding vehicle from an assetliability
management perspective.
Chapter 3 – Financial Plan 49

In addition to the undrawn revolvers, EDC’s expected liquidity policy changes will also
impact the short-term program requirements. The proposed policy changes will better
align liquidity management to the sources which EDC actually uses under normal
circumstances and for which EDC has the greatest confidence of availability during
stressed scenarios. Under almost all market conditions EDC, as a Crown corporation
with a AAA rating, should continue to be able to meet its liquidity needs through the
issuance of CP. As mentioned previously, during the extreme market conditions
experienced last year, the Corporation demonstrated its ability to access the CP
market and actually benefited due to the flight to quality. The new liquidity policy will
recognize the full amount of unused CP as a liquidity source and will ensure that the
Corporation maintains sufficient levels of authorized availability of this source.
Treasury’s ability to remain flexible and fund the unexpected will depend on having
sufficient authority in both the long- and short-term programs thus enabling the
Corporation to meet its core and temporarily expanded mandate.
Table 7 summarizes EDC’s Long-Term Borrowing Requirement Projection for 2010.
Table 7
LONG-TERM BORROWING REQUIREMENT PROJECTION FOR 2010
(U.S. $ in Millions) 2010
Decrease/(Increase) in Cash from Operations (761)
Net Loan Disbursements 4,805
Eligible Dividend 123
Activity from Operations 4,167
Decrease/(Increase) in Short-Term Loans Payables (2,146)
Refinancing of Debt Maturities 4,216
Buybacks 625
Callable Debt 71
Activity from Liabilities 2,766
Minimum Borrowing Requirements for Corporate Plan 1 6,933
Potential Increases to Cash Requirements
Changes to Assumption on Callable Debt 43
Changes to Assumption on Lending Activity 1,733
Changes to Foreign Exchange, Credit Migration, etc 60
Reduction of Outstanding Commercial Paper 400
Pre-Funding of 2011 Volumes 500
Potential Additional Borrowing Requirements 9,669
1
Table 5 – Cashflow Statement – Issue of long-term loans payable in Canadian dollars (FX rate $1.16230) is $8,058.
EDC may have access to a confirmed standby revolving credit facility, which will allow the Corporation to borrow funds at predetermined
rates of interest if necessary for operating purposes.
Risk Factors to Borrowing Strategy Resulting in Increased
Borrowing Requirements
As EDC takes on domestic financing and deploys more of its capital for riskier
transactions, there is a greater likelihood of higher borrowing requirements. The
tremendous uncertainty in the global economy has led to tight market capacity and
50
2010-2014 Corporate Plan Summary

educed overall liquidity. Access to liquidity is crucial to competitiveness and success
for both EDC and their customers.
With EDC gaining more flexibility in its mandate, Treasury needs to secure the same
level of flexibility with respect to funding. EDC experienced increases in its 2008
borrowing requirements due to demand from companies in search of accessible cash.
Even with increased authority amounts in both the long-term and short-term
programs, EDC had limited ability to respond to unexpected disbursements by year
end. Therefore, it is crucial that the Corporation maintains the flexibility necessary to
meet the unforeseen. With undrawn revolvers of U.S. $4 billion, EDC requires the
capacity to fulfill these obligations.
As market conditions change and investor demand permits, EDC may adjust the
amount of CP outstanding. Adjustments will be based on opportunities presented in
the Capital Markets and could bring CP closer to the lower end of its targeted
operating range (U.S. $1.5 billion). Managing these opportunities and balancing it
between short-term and long-term funding requires the Corporation to have sufficient
long-term authority to execute its strategy.
Finally, as market conditions are continuously evolving, EDC is looking to create
capacity to permit the pre-funding of part of 2011’s requirements should market
conditions be conducive.
Given the sensitivity of the assumptions and the current market environment, 2010
cash requirements could increase by over U.S. $2.7 billion.
Table 8 summarizes EDC’s Projected Borrowing Plans through to 2014.
Table 8
PROJECTED BORROWING PLANS (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Loans Payable Limit 91,560 93,555 91,740 96,510 99,660 108,090 113,025 118,365
Position Against Limit 25,882 24,964 28,958 32,929 35,430 38,210 39,946 41,066
Per cent Used 28% 27% 32% 34% 35% 35% 35% 35%
Long-Term Borrowing Limit
(U.S. $9.0 billion) 1 8,535 - 10,589 - - - - -
Position Against Limit 7,255 6,343 7,745 8,058 7,628 7,621 10,861 10,731
Per cent Used 85% - 73% - - - - -
Commercial Paper Borrowing
Limit (U.S. $8.0 billion) 1 7,348 - 9,504 - - - - -
Position Against Limit 6,625 2,483 5,083 6,906 6,906 6,906 6,906 6,906
Per cent Used 90% - 53% - - - - -
1
The limits are set each year in consultation with the Department of Finance, and accordingly, there are no limits set for 2010 to 2014. At the time of the
2009 Corporate Plan, the new long-term borrowing and the Commercial Paper Borrowing limits had not been approved. In 2008, the long-term borrowing
limit was U.S. $8.0 billion and the CP limit was U.S. $6.0 billion).
Chapter 3 – Financial Plan 51

3.10 Operation of Subsidiary
EDC incorporated Exinvest Inc. in 1995. It acquired shares of Exinvest Inc. in
accordance with the applicable provisions of the FAA and the ED Act. The authorized
objectives of Exinvest Inc. are to establish and/or invest in corporations, partnerships,
joint ventures or any other form of unincorporated bodies (financing vehicles), all of
which will provide financial assistance for, or to the benefit of, sales or leases of goods,
or the provision of services, or any combination thereof.
During 2009 and over the planning period, no new financing vehicles and no
potential business transactions are anticipated as spare capital in this organization was
returned to the Shareholder in 2002. The financial projections for Exinvest Inc. are
therefore based upon the servicing of its existing business commitments. The
following tables set out the consolidated financial results of Exinvest Inc. for the
planning period. No Capital Expenditure Plan is provided, as Exinvest Inc. does not
anticipate entering into any such expenditure over the planning period.
Table 9 summarizes the Exinvest Inc. Projected Consolidated Income Statement
through to the year 2014.
Table 9
EXINVEST INC.
PROJECTED CONSOLIDATED INCOME STATEMENT (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Revenue
Interest Income 5 4 3 3 - - - -
Expenses
Provision for (Reversal of)
Credit Losses 9 1 13 (10) (14) (1) (1) (7)
Admin and Other (9) (2) (3) 1 - - - -
- (1) 10 (9) (14) (1) (1) (7)
Net Income 5 5 (7) 12 14 1 1 7
Retained Earnings at
Beginning of Year 7 14 12 5 17 31 32 33
Retained Earnings at
End of Year 12 19 5 17 31 32 33 40
52
2010-2014 Corporate Plan Summary

Table 10 summarizes the Exinvest Inc. Projected Consolidated Balance Sheet through
to the year 2014.
Table 10
EXINVEST INC.
PROJECTED CONSOLIDATED BALANCE SHEET (2008-2014)
2008 2009 2009 2010 2011 2012 2013 2014
($ in Millions) Actual Plan Fcst Plan Proj Proj Proj Proj
Assets
Loans Receivable 44 35 37 32 - - - -
Allowance for Losses (10) (3) (15) (13) - - - -
Net Loans Receivable 34 32 22 19 - - - -
Cash and Marketable Securities 40 49 53 60 95 95 95 95
Accrued Interest and Other 4 2 3 3 - - - -
Total Assets 78 83 78 82 95 95 95 95
Liabilities and
Shareholder’s Equity
Allowance for Call of Indemnity 13 12 21 13 12 11 10 3
Other Liabilities 7 6 6 6 6 6 6 6
20 18 27 19 18 17 16 9
Capital 46 46 46 46 46 46 46 46
Retained Earnings 12 19 5 17 31 32 33 40
58 65 51 63 77 78 79 86
Total Liabilities and
Shareholder’s Equity 78 83 78 82 95 95 95 95
Chapter 3 – Financial Plan 53

54 2010-2014 Corporate Plan Summary

Annex I
Corporate Overview
Export Development Canada (EDC) is a Crown corporation that provides trade
finance and risk management services to facilitate the trade and investment activities
of Canadian companies.
This reference guide is intended to complement the information provided in the
Business Strategy by providing additional background on EDC. More specifically, this
guide includes information relating to EDC’s:
4 Legislative Powers and Obligations – as prescribed under the Export
Development Act and the Financial Administration Act.
4 Managerial and Organizational Structure – the executive team manages the
operations of EDC within the strategic goals and objectives as laid out in the
Corporate Plan.
4 Board and Committee Structure – the Board plays a pivotal role in setting the
strategic direction of EDC and in ensuring public policy objectives are met by
EDC in the most effective manner. The Board also reviews the development
and refinement of the various financial services; approves certain loans,
insurance and guarantee contracts; authorizes funding transactions; and
monitors EDC’s performance.
4 Products and Services – the solutions which are structured to facilitate the
needs of Canadian exporters in an ever changing global trade environment.
This information has been provided in accordance with the Treasury Board of
Canada’s Guidelines for the Preparation of Corporate Plans.
Annex I – Corporate Overview
55

MANDATE AND OPERATING PRINCIPLES
Mandate
EDC’s mandate was temporarily expanded for a two-year period through the 2009
Budget Implementation Act. Subsection 10(1) of the Export Development Act was
amended to read:
“The Corporation is established for the purposes of supporting and developing,
directly or indirectly,
(a) domestic trade and Canadian capacity to engage in that trade and to respond to
domestic business opportunities; and
(b) Canada’s export trade and Canadian capacity to engage in that trade and to
respond to international business opportunities.”
Operating Principles
Respect International
Agreements
EDC conducts its business in a manner that is: respectful of applicable international
agreements to which Canada is a party; consistent with its Corporate Social
Responsibility (CSR) commitments; and ensures the sound financial management of
its activities.
Canada is party to many international obligations. While the vast majority of these
are declaratory or a subscription by Canada to a set of principles to guide domestic
law-making and behaviour, some are formalized in international agreements.
Among the key agreements for EDC are the following:
4the OECD Consensus
4the WTO Agreement on Subsidies and Countervailing Measures
4the Berne Union General Understanding
4the Recommendation on Common Approaches on Environment and Officially
Supported Export Credits
Sound Financial
Management
EDC conducts its operations on a self-sustaining basis, generating sufficient income
to protect its assets, to manage market volatility and to support future business. In
this regard, self-sustainability is dependent on obtaining adequate returns for risks
taken, containing costs and appropriately managing risk.
Additional details on EDC’s approach to sound financial management are included
in Chapter 3.
Statement of Priorities and
Accountabilities (SPA)
As an instrument of public policy, EDC’s business strategy must align with and
reflect the priorities outlined by the Minister of International Trade in the Statement
of Priorities and Accountabilities.
In the SPA, the Minister recognized the role EDC is playing through the activities
carried out under its expanded mandate to add capacity to the market and fill the
gaps created by the current credit crunch. The Minister also makes note of EDC’s
decision to focus its domestic activities in trade-related areas.
56
2010-2014 Corporate Plan Summary

The Minister highlighted EDC’s partnerships with the banks and with the private
sector credit insurers as an ongoing priority and has asked EDC to continue to work
within the International Trade portfolio to support a more effective leveraging of
Canada’s resources.
The SPA also makes reference to the 2008 Legislative Review, which has concluded
and the Government is considering its response. The Minister makes note of the
important policy considerations raised in the review process with respect to EDC’s
participation in short-term export credit insurance and domestic financing markets,
and states that review process offers an opportunity for the Government to ensure
EDC is given the necessary flexibility to support Canadian exporters in good times
and bad.
For 2010 and into the planning period, the Government expects EDC to use its
capital to take on more risk. Canada Account is also mentioned as an important
instrument to complement EDC’s corporate activities and EDC has been asked to
participate with DFAIT and Finance Canada officials in the development of a
forward-looking framework for future usage of Canada to ensure it is used
appropriately and achieves maximum long-term benefit for the Canadian economy.
Finally, the Minister has commended EDC for its commitment to operate in a
socially responsible manner and asks that the Corporation continue to evolve its
CSR practices in step with other international players.
LEGISLATIVE POWERS AND OBLIGATIONS
Legislative Powers
The Export Development Act (The Act) and subsequent regulations, as amended
from time to time, provide the legislative basis for EDC’s activities. Section 10 of The
Act outlines the powers that EDC may exercise in pursuit of its mandate. Trans -
actions supported under Section 10 are considered to be Corporate Account
transactions as they are funded and supported by the Corporation’s own balance
sheet and income generating capacity, and not through annual appropriations.
In addition to its Corporate Account activities, under Section 23 of The Act, EDC may
be authorized by the Minister for International Trade, with the concurrence of the
Minister of Finance, to undertake certain transactions of a financial nature to
support and develop Canada’s export trade. While EDC strives to find ways to
structure transactions under its Corporate Account, there are a number of factors
which might lead EDC to refer a transaction to Canada Account. For instance, the
transaction could exceed EDC’s exposure guideline for a particular country or
involve markets or borrowers representing exceptionally high risks, amounts or
financing terms in excess of what EDC would normally undertake. The monies
required to discharge Canada Account transactions are made available from the
Consolidated Revenue Fund.
Annex I – Corporate Overview
57

LEGISLATIVE POWERS AND OBLIGATIONS (cont’d)
The Act limits Canada Account’s outstanding commitments to borrowers and
liabilities under contracts of insurance and other agreements to an aggregate of
$20 billion. As of March 31, 2009 such commitments and liabilities totaled
$4.8 billion.
The Regulations under The Act related to domestic financing and insurance were
suspended for a two-year period as part of the 2009 Budget Implementation Act.
This suspension enables EDC to provide such support under its traditional export
mandate without having to seek Ministerial authorization.
Legislative Obligations
Section 25 of The Act requires that the Minister for International Trade, in
consultation with the Minister of Finance, initiate an independent review of the
provisions and operation of The Act every 10 years.
An independent report on EDC’s mandate and operational effectiveness was
commissioned by the Government and prepared by International Financial
Consulting (IFC). This report was submitted to Parliament by the Minister for
International Trade in February 2009 and reviewed by the Senate Committee of
Foreign Affairs and International Trade. The House of Commons Standing Committee
on International Trade declined to conduct a review.
The Government is now considering the IFC report and the views of the Senate
committee and is expected to respond in late 2009.*
A special examination is mandated every five years under the Financial
Administration Act (FAA) and a report on the findings must be submitted to the
Board of Directors. The last special examination was conducted in 2008. The report
has been presented to EDC’s Board of Directors, the Minister for International Trade
and the President of the Treasury Board [a copy of the report has been posted on
EDC’s webpage].
The Act also stipulates that an audit of the design and implementation of EDC’s
Environmental Review Directive (the Environment Audit) must be undertaken by the
Office of the Auditor General (OAG) every five years. The 2008 review was
presented to the EDC’s Board of Directors and was tabled in Parliament in
June 2009 (a copy of the review is available at www.oag-bvg.gc.ca).
Accountability to Parliament
The Government of Canada primarily regulates Crown corporations through their
enabling legislation and through the FAA. EDC is currently listed under Part I of
Schedule III to the FAA, and as such is required to, among other things:
4submit an Annual Report, a Corporate Plan and an Operating Budget to the
responsible Minister; and
4undergo regular audits by the OAG.
* To read the Government’s response to the 2008 Legislative Review, please refer to
www.international.gc.ca/media_commerce/comm/news-communiques/2009/379.aspxlang=eng.
58
2010-2014 Corporate Plan Summary

MANAGERIAL AND ORGANIZATIONAL STRUCTURE
President & Chief Executive Officer
Strategic Planning and Corporate
Communications
Internal Audit
Risk
Management
Financing
Human Resources and
Corporate Services
Business
Development
Insurance
Business Solutions
and Technology
Corporate Secretariat
and Legal Services
Finance and Administration
BOARD AND COMMITTEE STRUCTURE
Chair of the Board
Board of Directors
Executive Committee
4Handling of urgent matters between Board meetings
4Authority to exercise certain Board powers
Risk Management Committee
4Oversight of management of credit, market and other
enterprise risks and of overall capital adequacy relative
to EDC’s risk profile and Corporate Plan Objectives
4Risk management and capital adequacy policies and
strategies
4Environmental compliance
4Review of proposed transactions, and policy limit
exceptions/increases for recommendation to Board
Audit Committee
4Financial and management control systems
4Financial reporting
4Corporate financing
4Ethical compliance, audits of the ERD and special
examinations
4Internal and external audits
4Dividend: review eligibility
Nominating and
Corporate Governance Committee
4Appointment process for CEO, Board Chairperson
and Directors
4Board and Committee effectiveness
Human Resources Committee
4HR strategic planning
4Compensation policy and budgets
4Succession planning, including approval or review of cer -
tain senior appointments for recommendation to the Board
4President’s objectives, recommendations
re: performance, salary and benefits
4Design and compliance of EDC pension plan
4Oversight of pension plan administration
Business Development Committee
4Reviews Canadian Benefits Framework
4Input into strategic policy direction, including
Corporate Plan
4Oversight of analysis of market conditions, and
responses
4Monitors performance against business strategies
and policies
Annex I – Corporate Overview
59

EDC’S FINANCING AND INSURANCE SOLUTIONS
INSURANCE
Protects policyholder against various types of risks.
PRODUCTS
CUSTOMER APPLICATIONS
Accounts Receivable
Insurance
Protects policyholders against commercial credit risk such as non-payment by their
buyers, whether due to insolvency, default, repudiation of goods or termination of
contracts, as well as against political risks such as difficulty in converting or
transferring currency, cancellation of export or import permits, and war-related risks.
Coverage is available for companies of all sizes and some products have been
streamlined to meet the needs of SMEs.
Export Protect
See Online Products and Tools.
Documentary Credits
Insurance
Protects banks in Canada confirming or negotiating irrevocable letters of credit
(ILCs) issued by foreign banks to exporters of Canadian goods and services. The
policy provides insurance against the risk that the foreign bank may fail to pay the
insured bank for payments due to the exporter under the ILC. This enables the
exporter to look to a bank in Canada for payment rather than the buyer’s bank
abroad.
Contract Frustration
Insurance
Tailored coverage used for one-off goods, services and project contracts.
Political Risk Insurance
Protects Canadian companies with investments in foreign countries and/or lenders
that finance investments pursued by Canadian companies abroad. Traditional
policies cover investors or lenders against currency conversion and/or transfer
difficulties, expropriation by the host government, and political violence. Availability
of political risk insurance can also allow companies to leverage additional financing
for projects. The Political Risk Insurance program includes the non-honouring of a
sovereign payment obligation to a lender; the nonpayment to an investor of an
arbitral award against a sovereign entity; and coverage of the rights associated with
mobile assets. In addition, EDC has made a number of changes to the program to
accommodate small business transactions.
60
2010-2014 Corporate Plan Summary

BONDING
Contract bonds assist Canadian companies to post or secure surety, guaranteeing their bid,
performance and certain other obligations related to an export trade. They are issued in
the form of a letter of guarantee by banks or as surety bonds by licensed sureties.
PRODUCTS
CUSTOMER APPLICATIONS
Performance Security
Guarantees
Provides banks with a guarantee against any calls pursuant to the guarantees
issued by the bank on an exporter’s behalf and frees up working capital for the
exporter.
Performance Security
Insurance
Protects exporters from wrongful calls made on their bank letters of guarantee and
is also available online under the Wrongful Call Program.
Foreign Exchange Facility
Guarantee
Provides a second demand guarantee to the financial institution (FI) for 100% of
the collateral provided to the FI with respect to the exporter’s forward contracts
facility, in the event that the exporter does not close the forward contract on the
“settlement date”.
Financial Security Guarantee
Provides the bank with a second demand guarantee to secure exporters' obligations
in respect of suppliers and offshore working capital facilities.
Surety Risk Sharing
When an exporter with existing but limited surety lines is required to post surety
bonds instead of bank letters of guarantee, EDC offers surety capacity in the form of
Surety Re-Insurance to licensed sureties to increase capacity to facilitate the
issuance of such bonds.
Surety Fronting Services
Available to exporters when financial profiles or volume of business does not meet
normal surety underwriting guidelines. Surety bonds are thus issued by licensed
sureties with the full support of EDC. This allows smaller exporters to access a surety
market that is not typically available to them.
Annex I – Corporate Overview
61

FINANCING
Enables Canadian companies to provide their customers with flexible, medium- or long-term financing. EDC
offers a variety of structures that can be tailored to meet today’s evolving market conditions the world over.
PRODUCTS
CUSTOMER APPLICATIONS
Lines of Credit
Provides a fast and inexpensive means by which exporters can promote sales via
pre-arranged financing facilities between EDC and foreign banks or corporations.
That is, EDC may lend to a foreign bank for on-lending to buyers of Canadian
exports, or EDC can establish a line with a major foreign corporation that is
purchasing from one or more Canadian exporters.
Loans
Loans between EDC and a buyer/borrower can be arranged for any export
transaction. Two basic types of loans are available:
4Buyer Credit involves a financing arrangement between EDC and the buyer (or a
separate borrower on behalf of the buyer) to finance Canadian exports generally
related to a specific export contract.
4Supplier Credit transactions are structured to provide the exporter (supplier) with
the ability to provide its buyer with extended payment terms. EDC can also
provide pre-shipment financing to exporters, in conjunction with their bank, to
finance costs directly related to an export contract.
EDC may also provide financing to Canadian companies to support their export
business or their foreign investments.
Project Finance
Provides limited recourse financing to fund the construction of industrial and
infrastructure projects across various sectors in support of Canadian exports to, or
Canadian sponsor investment in, such projects. Project sponsors can additionally
benefit from EDC’s considerable expertise in arranging project finance transactions
in cooperation with other lenders.
Guarantees
EDC may issue a guarantee to a financial institution to cover loans to foreign
borrowers for the purchase of Canadian exports, or to exporters to provide
financing to support their export business or foreign investments.
Equity and Other Forms
of Related Investments
EDC may provide equity and/or other forms of related investments (including fund
investments) in support of next generation Canadian exporters and to facilitate
globalization of existing Canadian companies. This allows EDC to offer broader
support to Canadian firms, leverage additional sources of financing, foster
cooperation among Canadian firms and their partners, and assist Canadians to
compete globally.
62
2010-2014 Corporate Plan Summary

ONLINE PRODUCTS AND TOOLS
Provides another channel to inform, contact, transact with and serve Canadian companies.
PRODUCTS
CUSTOMER APPLICATIONS
EXPORT Protect
Provides online single transaction insurance coverage on a foreign buyer.
EXPORT Check
Provides a credit profile of a foreign buyer and/or a Dun & Bradstreet business
information report.
EXPORT Able
Helps potential exporters assess their company’s overall readiness to export.
EXPORT Finance Guide
Centralizes information about the wide range of solutions for an exporter’s
financing needs based on their location in the transaction cycle.
Country Information
Provides comprehensive market intelligence on a variety of regions and countries
enabling the user to assess business opportunities outside of Canada.
Online Solutions Advisor
A diagnostic tool that helps to identify the appropriate EDC product or service
based on the exporter’s need(s).
Currency Converter
Provides conversions into and from a variety of world currencies, for both current
day and past dates (provided by the Bank of Canada).
Annex I – Corporate Overview
63

64
2010-2014 Corporate Plan Summary

Annex II
CANADIAN EXPORT FORECAST BY SECTOR AND MARKET
% Share of Export Outlook (% growth)
SECTORS
CAD bn
2008
Total Exports
2008 2009 2010
Agri-food
Developed Markets 30.5 6.7 -6.0 2.0
Emerging Markets 12.2 2.7 -6.9 -0.5
Energy
Developed Markets 131.1 28.8 -43.1 9.4
Emerging Markets 2.9 0.6 -37.3 -2.6
Forestry
Developed Markets 26.7 5.9 -19.7 3.1
Emerging Markets 4.5 1.0 -6.5 10.0
Ores and Metals
Developed Markets 56.0 12.3 -35.1 10.4
Emerging Markets 5.9 1.3 -17.6 16.9
Other Industrial Products
Developed Markets 6.7 1.5 -13.7 9.2
Emerging Markets 0.7 0.2 -12.6 9.2
Chemicals, Plastics
Developed Markets 33.4 7.3 -15.9 6.2
Emerging Markets 3.6 0.8 -40.8 7.4
Fertilizers
Developed Markets 5.9 1.3 -44.4 8.6
Emerging Markets 2.2 0.5 -34.1 -7.7
Aircraft and Parts
Developed Markets 9.6 2.1 3.9 -11.3
Emerging Markets 1.3 0.3 -7.7 -6.4
Ground Transportation
Developed Markets 2.1 0.5 -8.2 0.7
Emerging Markets 0.3 0.1 32.3 10.9
Advanced Technology
Developed Markets 16.7 3.7 -9.7 -4.8
Emerging Markets 2.5 0.5 -1.5 5.6
Industrial M&E
Developed Markets 24.1 5.3 -11.8 1.2
Emerging Markets 4.9 1.1 7.3 5.5
Automotive
Developed Markets 53.8 11.8 -22.6 15.7
Emerging Markets 1.4 0.3 -13.5 13.7
Consumer Goods
Developed Markets 7.8 1.7 2.9 -1.9
Emerging Markets 0.5 0.1 -4.9 3.0
Special Transactions
Developed Markets 7.6 1.7 -24.1 7.1
Emerging Markets 0.2 0.0 -2.0 8.4
Total Merchandise 455.4 100.0 -26% 6%
Developed Markets 411.8 90.4 -27% 6%
Emerging Markets 43.6 9.6 -13% 5%
Annex II – Canadian Export Forecast by Market and Sector
65

Annex III
THE EVOLUTION OF CSR AT EDC
CONTINUOUS
IMPROVEMENT
DEVELOPMENT
DESIGN
BEGINNING
2009
2008
2007
2006
2005
2003/2004
2002
2001
1999/2000
1998
Pre-1998
4EDC’s CSR Strategy
4OAG Special Examination of CSR, and of Environmental & Social Review Practices
4EDC/IFC Environmental & Social Assessment Standards client workshop introduced
4Membership of CSR Advisory Council expanded
4Introduced Ethics Experts Best Practices workshop
4EDC’s Reputation Risk Assessment practices and processes benchmarked
4Fifth CSR Annual Report/Assured/GRI rated/published only online
4Biannual Employee Opinion Survey conducted
4CSR Strategic Review
4Creation of Chief CSR Advisor Role and team
4Statement on Human Rights
4Decision to adopt LEED gold standard for new head office
4Expanded disclosure practices
4Environmental Finance Chair created at University of Waterloo
4EDC-CARE Canada partnership
4Development of Employment Value Proposition
4Fourth CSR Annual Report/Audited
4Introduced Disclosure and Wrongdoings Policy
4Established baseline indicators for measurement of Operational Footprint
4Online Code of Conduct training
4Revisions to Charitable Donations Policy
4Scholarship Program expanded
4Market and Sector-Specific Multi-Stakeholder Consultations
4Integration of Environment and Sustainability into EYE Investment Goals
4Revisions to Disclosure Policy, v.2
4Adoption of Equator Principles
4Third CSR Annual Report
4Second CSR Annual Report
4Chief Environmental Advisor’s Report
4CSR Course Launched
4First Environmental Policy
4OAG’s Special Examination of CSR
4Release of first CSR Report
4First Chief Environmental Advisor’s Report
4Revisions to OECD Common Approaches, v. 2
4Community Donations Policy established
4CSR Framework established
4OECD Common Approaches
4Anti-Corruption Program
4Human Rights Agreement signed with DFAIT
4Launch of Compliance Program
4Office of the Auditor General of Canada (OAG) Environmental Audit
4First Disclosure Policy
4Creation of CSR Advisory Council
4Appointment of Chief Environmental Advisor
4EnviroExports Initiative
4Environmental Review Directive
4OECD Action Statement on Bribery
4Education and Youth Employment (EYE) Strategy signs first agreement
4Launch of CSR Strategy
4Environmental Review Framework
4Conflict of Interest Policy
4Code of Conduct
4Code of Business Ethics
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2010-2014 Corporate Plan Summary